Last Updated :
06 December 2008 at 13:10 IST
RBI brings repo rate down to 6.5%
Commodity OnlineMUMBAI : The Reserve Bank of India has cut repo rate 100 bps by down to 6.5% which will be effective by Dec 08, RBI Governor, D Subbarao announced.
This is on expected lines as the apex bank is struggling to bring in more liquidity in the system and lower its statutory interest rates to cut their lending rates.
Though the market has enough funds in its saddle, further infusion of liquidity will help ease the interest rates. At the end of the closing of last week, on Friday, banks parked around Rs 45,000 crore surplus funds with RBI at 6% under reverse repo.
One percentage point cut in CRR releases around Rs 40,000 crore in the system.
MCX ZINC 29 February 2012
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