With RBI Governor D. Subbarao already dropping several hints about the difficulty of cutting interest rates in this policy review, leaving the repo rate and cash reserve ratio (CRR) unchanged did not come as a surprise.
The repo rate, the rate at which RBI lends money to the commercial banks, continues to stand at 7.25 per cent. The central bank’s concern on inflation and current account deficit is even more pronounced now than during the previous review, given the steep fall in the rupee in recent weeks. The rupee’s slide casts doubts on whether the RBI can meet market expectations of a 50-75 basis point rate cut over the rest of this fiscal.
So where does this leave you?
A WAIT FOR BORROWERS
Read more >>Click here
No comments :
Post a Comment