RBI Governor Raghuram Rajan on Friday surprised the industry and shocked the stock markets by hiking the short-term policy rate by 0.25 per cent to keep .“worrisome” inflation under check, a move that may increase EMIs for home and auto loans in the medium term.
The RBI Governor, however, eased liquidity through a reduction in the marginal standing facility rate, at which banks borrow from the central bank, by 0.75 per cent to 9.5 per cent and eased the minimum daily maintenance of the cash reserve ratio (CRR).
The repo rate, or the short-term lending rate, has been increased by 25 basis points to 7.5 per cent from 7.25 per cent with immediate effect. Other policy rates will be adjusted accordingly.
He kept the cash reserve ratio (CRR), the portion of deposits that banks are required to maintain with the RBI in cash, unchanged at 4 per cent.
No comments:
Post a Comment