www.expressindia.com - Weather | Horoscope | Stocks | RSS
expressindia web city
HomeBlogsCricketAstrologyShopping TendersClassifieds Opinions Hotels
Sign In / Register | Archive
Expressindia » Story

RBI slashes key rates, infuses Rs 20k cr

Font Size

Reuters

Posted: Jan 02, 2009 at 1658 hrs IST
RBI

Mumbai The Reserve Bank of India slashed its two key short-term interest rates by 100 basis points each on Friday to stimulate an economy that has been slowing faster than expected.

It cut the repo rate, at which it lends cash to banks, to 5.5 per cent from 6.5 per cent.

The reverse repo rate, the rate at which the RBI absorbs excess cash from the system, was cut to to 4.0 per cent from 5.0 per cent.

Both reductions are effective immediately.

The repo rate has been cut aggressively since mid-October last year as the central bank tried to minimise the knock-on effects of the global financial crisis.

The central bank also announced a cut in cash reserve ratio, the proportion of deposits banks must keep with the central bank, by 50 basis points to 5.0 per cent with effect from Jan. 17.

Discuss this story on expressindia forums
Post Comments
Name* Email ID*
Subject* Country*
Message*
Characters remaining
 
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
I agree to the terms of use.
Investment allowance by ashwin on 03 Jan 2009

these interest cuts surprsingly do not refelct in our MTLs and WC Limits!! It should be compulsory for banks to do credit ratings of their clients, and the mother bank should decided exact interest chargeable to clients on rating basis. this will make it more transparent and equal. Taking it higher maybe a standard software can be designed to run to decide the clients credit rating automatically and apply applicable interest....MAKE USE OF TECHNOLOGY INSTEAD OF MAKING EXCUSES FOR LACK OF MANPOWER BANKERS!!!

Will ICICI cut rates? by Comman Man on 02 Jan 2009

ICICI must be making huge profits from home loan division. RBI's Repo, Reverse Repo and CRR are slashed considerably since October. ICICI had not reduced rates so far for existing borrowers. They did, just 50 basis point cut on 31st. At same levels of Repo, RevRepo and CRR, out home loan rates used to be around 8 pc. Will ICICI make it 8PC now? Even if they do, it will be applicable only effective second quarter i.e. april 01 2009. Hefty profits for ICICI

Latest News

Business

Showbiz

Sports

FBI may share details of Headley's association in Mumbai

India beat Sri Lanka, becomes No 1 in ICC Test rankings

Attempt to murder case filed against Asaram Bapu

PM to attend Copenhagen summit on climate change

Rajkhowa did not surrender, he was trapped in a sting operation

Abolish caste system: SC, gives lifer to 6 for Dalit killings

Govt rejects SC collegium's move to elevate Dinakaran

More
Featured Services
© 2009 The Indian Express Limited. All rights reserved
The Indian Express Group | Advertise With Us | Privacy Policy | Feedback | Work With Us | Site Map