CRR hiked by 75 bps to suck excess liquidity, key policy rates untouched
PTI | January 29, 2010
The Reserve Bank of India today increased mandatory cash reserve of banks held by it by 75 basis points in a bid to suck excess liquidity to combat rising inflation.
However, short-term lending and borrowing rates between RBI and banks were kept unchanged, leading to speculation that banks' commercial lending rates may not change.
The apex bank also upped its economic growth projection to 7.5 per cent from its earlier estimate of 6 per cent for the current fiscal.
The 75-basis point increase in cash reserve ratio to 5.75 per cent is expected to suck out at least Rs 36,000 crore from the system. The move is to check food inflation spreading to other sectors.
According to RBI estimate, inflation is likely to touch 8.5 per cent by this fiscal-end from over 7 per cent in December. Earlier in October, the apex had projected the rate of price rise to be at 6.5 per cent by March-end.
Central Bank of India Executive Director Arun Kaul said CRR hike is more than market expectation, definitely liquidity would go down and may have some impact on interest rate.
Immediately after the announcement of credit policy, the benchmark Sensex on the Bombay Stock Exchange nosedived by 300 points but recovered from day's low level. The key index is trading down by over 190 points at intra-day.
The Maharashtra State Commission for Women has urged the chief justice of India to take suo moto action in the matter of the Bombay high court converting to life imprisonment the death sentence of the two persons convicted for the brutal rape and murder of a Pune BPO executive in 2008. Chall
BSE StAR MF, India`s largest mutual funds distributor platform, is working on ways to transform itself into a unique end-to-end value-based services platform. It has achieved 61% share of equity net inflows (Rs 802.96 crore out of Rs 1311.65 crore) for the month November 2019. “T
Two weeks after the Maha Vikas Aghadi (MVA) came to power in Maharashtra on November 28 following a month-long political tug of war, chief minister Uddhav Thackerey has announced cabinet portfolios, keeping the home department for his Shiv Sena party, while giving the allies NCP and the Congress finance an
The Citizenship (Amendment) Bill 2019 has been cleared by parliament, as the Upper House on Wednesday passed the legislation that seeks to grant Indian citizenship to non-Muslims from three neighbouring countries. “A landmark day for India and our nation’s ethos of compassion an
After a day-long debate which often turned acrimonious, the Lok Sabha has passed the Citizenship (Amendment) Bill 2019, seeking to provide citizenship to non-Muslims from three neighbouring countries who have migrated to India. Prime minister Narendra Modi said he was “delighted&
Home minister Amit Shah on Monday introduced in the Lok Sabha the Citizenship Amendment Bill, triggering a long-ranging debate on the ideas of India, with the opposition parties claiming it was regressive. The bill seeks to grant citizenship to non-Muslim citizens of the neighbouring Pakista