31 Jul 2012

RBI Monetary Policy Review

                                                     Your Trust - Our Inspiration
Mumbai: For the second consecutive time, Reserve Bank Governor D Subbarao Tuesday left the key interest rate unchanged to fight inflation, and lowered the growth projection for the current fiscal to 6.5 percent.

However, as a liquidity inducing-measure, the Governor brought down the Statutory Liquidity Ratio (SLR) -- the amount of deposits banks park in government bonds -- by 1 percent to 23 percent, effective Aug 11.
The key lending (repo) rate, at which banks borrow from RBI, has been retained at 8 percent despite demands from the industry to cut interest rates to spur economic growth.The Cash Reserve Ratio (CRR) -- the amount of deposits banks keep with RBI in cash -- has also been retained at 4.75 percent.

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