Due to inflation, reduction in repo rate not possible: RBI
By Neelima Shankar
Oct 16, 2012
Print    Email    RSS   

It might be difficult for the Central Bank to push economic growth by reducing repo rate any further as the inflation remained high in September. Though there are clear indications of further reduction in the interest rates to accelerate growth.

Mr. N S Venkatesh, General Manager (treasury) of IDBI Bank said that due to high inflation and trade deficit, the repo cut wasn't in the second quarter.

RBI might the reduce cash reserve ratio (the amount banks keep with RBI) rather than changing the repo rate, which is currently 8 per cent. Repo rate is the rate at which bank borrows from RBI.

However, RBI had cut CRR by 25 bps from 4.75% to 4.50% few days back and this led to the injection of Rs 17000 crore into the banking system.

The central bank will be reducing its repo rate in first quarter in 2013.

(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Credit profile and its effect on loan...
Carnival of Indian Personal Finance Blogs #1
Personal Finance for the 21st century...
Carnival of Indian Personal Finance Blogs #4
How to check balance in savings bank account

how to download my account details
last six months statement

HDFC bank adjudged as the Best private bank in India Feb 16, 2015
HDFC reported an increase of 20% in its net profit Feb 16, 2015
ICICI bank launched Flash remit facility Feb 13, 2015
BOM launched new savings deposit scheme for HNI customers Feb 12, 2015
BMB bank to have a total of 80 branches by the March end. Feb 10, 2015
News Archive