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Sunday, 16 September 2012

RBI cuts CRR by 25 bps, repo rate unchaged at 8 pc


New Delhi: The Reserve Bank of India (RBI) cut the cash reserve ration (CRR) by 25 basis points, which will leave Rs 17,000 crore more with the banks. Announcing its credit policy on Monday, which came in the backdrop of some big bang reforms pushed by the UPA Government, the RBI brought down the CRR from 4.75 per cent to 4.50 per cent.
However, the repo rate remained unchanged at 8 per cent as the apex bank continues to target inflation, which has shown no signs of cooling down. As a consequence of there has been no change in the reverse repo rate too.
With interest rates remaining the same, the EMIs on loans remained unchanged.

Prime Minister's Economic Advisory Council (PMEAC) Chairperson C Rangarajan called the policy a 'cautious move' and said that the RBI actions would be based on how inflation pans out in the future.


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