| New RBI Governor bites the bullet, raises repo by 25 bps |
The new Reserve Bank of India chief Raghuram Rajan announced his first monetary policy statement today and said that high inflation is a cause for concern
RBI's new governor Raghuram Rajan today bit the bullet by hiking the repo rate by 25 basis points to 7.5%.
Economists had widely expected the RBI to leave the repo rate unchanged.
The central bank, however, reduced the Marginal Standing Facility (MSF) rate by 75 basis points to 9.5%.
The reverse repo rate stands adjusted at 6.5%.
RBI also reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 99% of the requirement to 95% effective from the fortnight beginning September 21, while keeping the CRR unchanged at 4%.
Economists had widely expected the RBI to leave the repo rate unchanged.
The central bank, however, reduced the Marginal Standing Facility (MSF) rate by 75 basis points to 9.5%.
The reverse repo rate stands adjusted at 6.5%.
RBI also reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 99% of the requirement to 95% effective from the fortnight beginning September 21, while keeping the CRR unchanged at 4%.
Best Regards
Prakash Nair
www.keralites.net          |
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