Reserve Bank cuts CRR by 50 basis points, interest rates unchanged

   Jan 24, 8:43 pm

Mumbai, Jan 24 (ANI): The Reserve Bank of India (RBI) has lowered the Cash Reserve Ratio (CRR) by 50 basis points with effect from January 28, but kept the short-term lending rate unchanged in view of the inflationary concerns.

The cut is expected to inject Rs. 32,000 crore into the system.

RBI Governor D Subbarao, who unveiled the third quarterly monetary policy review, today said: "Based on the current inflation trajectory, including consideration of suppressed inflation, it is premature to begin reducing the policy rate."

"Even as inflation remains elevated, despite moderation, downside risks to growth have increased. The growth-inflation balance of the monetary policy stance has now shifted to growth," he added.

Subbarao further said slippage on fiscal deficit, crude prices and rupee depreciation are key challenges for inflation, which after remaining near double digit for almost two-years, came down to 7.5 percent in December last year.

The CRR has been reduced to 5.5 percent from 6 percent with effect from January 28. The CRR is the amount of deposits the banks are required to keep with RBI in cash.

The short-term lending rate (repo) has been kept unchanged at 8.5 per cent. (ANI)

Expenditure on digital ads to surpass TV in U.S. by 2017: Magna Global Aug 27, 3:34 pm
Washington, Aug 27 (ANI): Expenditure on digital advertising would exceed Television ad spending in the United States in 2017, predicts Magna Global in its recent forecast on Tuesday.
Full Story
Customer satisfaction remains prime focus for Japanese service providers Aug 25, 4:50 pm
Tokyo, Aug 25 (ANI): Tokyo, the mega city, is known for its best telecommunication services.
Full Story
Todd Park planning to step down as America's Chief Technology Officer Aug 24, 12:56 pm
Washington, Aug 24 (ANI): The White House's Chief Technology Officer, Todd Park, is reportedly planning to step down from his position as an advisor to President Barack Obama by the end of the year.
Full Story
Microsoft pays no taxes on 93 billion dollars held outside of U.S. Aug 23, 1:54 pm
Washington, Aug 23 (ANI): Tech giant Microsoft saves almost 30 billion dollars by avoiding taxes and holds income accounts of 92.9 billion dollars outside of the United States.
Full Story
Comments

LATEST STORIES
TOP VIDEO STORIES
PHOTO GALLERY