11:28 AM
alphaadvisory
The Reserve Bank of India on Tuesday cut both repo rate and Cash
Reserve Ratio (CRR). While the repo rate was cut by 25 bps to 7.75 per
cent, the CRR was also slashed by 25 bps to 4 per cent.
The reduction in CRR will infuse Rs 18,000 crore into the banking system, said RBI Governor D Subbarao while announcing the cut. The RBI also trimmed 2012-13 growth estimate to 5.5 per cent from 5.8
per cent.
It
also cut end-March 2013 inflation projection to 6.8 per cent from 7.5
per cent earlier. Subbarao said expectations of rangebound inflation in
2013-14 provides space, albeit limited, for policy to give greater
emphasis to growth risks.
The cut in the repo rate and CRR brings a cheer for many as it will make home loans cheaper now. Since last the last cut nine months ago, the RBI has resisted pleas from businesses and politicians for further reductions.
But the central bank had held out hope of a cut sometime this quarter after Prime Minister Manmohan Singh's fractious coalition in September ended a debilitating phase of policy inaction to make urgently needed reforms to reduce the fiscal deficit and attract foreign investment.
The reduction in CRR will infuse Rs 18,000 crore into the banking system, said RBI Governor D Subbarao while announcing the cut. The RBI also trimmed 2012-13 growth estimate to 5.5 per cent from 5.8
per cent.
- Video
Photo
- Gallery
The cut in the repo rate and CRR brings a cheer for many as it will make home loans cheaper now. Since last the last cut nine months ago, the RBI has resisted pleas from businesses and politicians for further reductions.
But the central bank had held out hope of a cut sometime this quarter after Prime Minister Manmohan Singh's fractious coalition in September ended a debilitating phase of policy inaction to make urgently needed reforms to reduce the fiscal deficit and attract foreign investment.
Posts
1 comments:
That's a good thing, right? I mean, with all that being said it should make everyone else life better especially for those who are consistently involved in the matter. Anyway, thank you so much for the easy home improvements help and for all the information.
Post a Comment