RBI brings repo rate down to 6.5%
Published on: December 06, 2008 at 13:10
Related Stories
MUMBAI : 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.
Total Comments : 0
The government is said to be considering a regulation which would make it mandatory for all oil companies to sell diesel with 20% blend of bio-diesel for retail market by the year 2017. But looking at the pace of development on the R&D and investment front, only a marginal part of the fixed percentage seems to be achievable. The blame goes to sluggish approach of the government to attract required investments for projects. 
Recent Questions
- Buy gold, silver and copper: Jim Rogers
- China wants to lord over gold and forex markets
- East Africa: The emerging global Oil power
- Jeff Nichols: No worries about gold price volatility
- China to assess gold, forex strategy
- China on prowl to invest in South African mines
- Where are gold, base metals headed?
- 'Gold is almost the best thing to use for money'
- China may unlock its Dollar reserves to buy Gold