Tuesday, 30 October 2012

CRR ratio by 0.25 per cent to 4.25 per

The Reserve Bank of India on Monday cut cash reserve ratio by 0.25 per cent to 4.25 per cent, and left the repo rate unchanged at 8 per cent.

The central bank had been facing growing pressure to cut the repo rate, for the first time since April, after Finance Minister P. Chidambaram pledged to rein in the country's fiscal deficit.

Here are the highlights of the press conference addressed by RBI governor D. Subbarao:

  • Repo rate unchanged at 8%
  • CRR cut by 25 basis points to 4.25%
  • Cut in CRR intended to pre-empt prospective tightening of liquidity
  • Cut in CRR to infuse Rs. 17,500 crore into the system
  • Cut in CRR effective November 3 fortnight
  • GDP growth forecast cut to 5.8% from 6.5%
  • Inflation projection raised to 7.5% by March end from 7% earlier

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