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RBI cuts rates!

January 2, 2009
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The Reserve Bank of India has cut the cash reserve ratio by 50 basis points, and both the repo and reverse repo rates by 100 bps. (100 bps=1%) The repo rate, after the cut, now stands at 4% from the 5% earlier.

In a statement, RBI said, “The reduction in the CRR will inject additional liquidity of around Rs 20,000 crore to the financial system. It is expected that the reduction in the policy interest rates and the CRR will further enable banks to provide credit for productive purposes at appropriate interest rates. The Reserve Bank on its part would continue to maintain a comfortable liquidity position in the system.”

Source: Moneycontrol

One Comment leave one →
  1. paulraj22 permalink
    January 2, 2009 7:02 pm

    lets hope this and other upcoming steps by the “moneyheads” of our country offer promised ballast and calm spooked investors.

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