The Reserve Bank of India releasing its third quarter monetary policy has, on Tuesday, announced a reduction in the repo rate and cash reserve ratio by 25 basis points. The new effective repo rate for the third quarter is now fixed at 7.25 per cent while CRR rate has revised to 4 per cent. This move is likely to bring cheer to the stock market with the cut in CRR likely to inject Rs 18,000 crore (Rs 180 billion) in the system increasing liquidity in the markets.
Read more >> Click here
The reduction in repo rates has effectually reduced the reverse repo rates down to 6.75 per cent as well. The reduction, first in over nine months has been largely on expected lines as banking experts and finance ministry had expressed concern over contracting industrial output and falling growth.
No comments :
Post a Comment