RBI keeps repo rate unchanged at 6.5%
The Dollar Business Bureau In line with the industries’ earlier projections, the Reserve Bank of India (RBI) has kept the key interest rates unchanged, leaving the repo rate, also referred as repurchase rate, at 6.5% and the cash reserve ratio (CRR) of scheduled banks at 4.0%. The Indian banking body, in its second bi-monthly Monetary Policy Statement for the financial year 2016-17, said the decision to maintain the status quo on key rates was taken against the backdrop of current and evolving macroeconomic situation. “Consequently, the reverse repo rate under the LAF will remain unchanged at 6.0%, and the marginal standing facility (MSF) rate and the Bank Rate at 7.0%,” RBI said in its announcement. RBI further said a slight increase in inflation, which ...
RBI cuts repo rate by 25 bps to 6.5%; keeps CRR unchanged
The Dollar Business Bureau The Reserve Bank of India (RBI) has reduced the repo rate, also called the repurchase rate, under the liquidity adjustment facility (LAF) by 25 basis points to 6.50% from its earlier 6.75%. In the first bi-monthly monetary policy review for the financial year 2016-17, RBI Governor Raghuram Rajan on Tuesday said the decision was taken in the backdrop of the current and evolving macroeconomic situation. The Indian banking body also lowered down the minimum daily maintenance of the cash reserve ratio (CRR) by 5 percentage points to 90% from 95%, while leaving the CRR unchanged at 4% of net demand and time liabilities (NTDL). The change will come into effect from April 16, 2016. The reverse repo rate, at which ...
RBIs status quo on key rates evokes mixed response
The sixth bi-monthly monetary policy statement 2015-16 also underscored some of the apparent reasons for Indias satisfactory growth rate and projected 7.6% GDP growth rate for the year 2016-17 The Dollar Business Bureau The reverse repo rate under the LAF is unchanged at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75% Ahead of the Union Budget 2016-17, the Reserve Bank of India (RBI) Governor Raghuram Rajan decided to keep the repo rate and cash reserve ratio unchanged, citing reasons as the current and evolving macroeconomic situation. On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to continue with daily variable rate repos and reverse repos to smooth liquidity, the ...
RBI maintains status quo on key interest rates
RBI Governor Raghuram Rajan said the government was in the process of determining the base rate and it will be announced later this week' The Dollar Business Bureau RBI is set to bring down inflation to 6% by January next year and aims to further reduce it to 5% by March 2017 The Reserve Bank of India (RBI) on Monday decided to keep key interest rates unchanged in the backdrop of current and evolving macroeconomic situation. Following the announcement, the CRR (cash reserve ratio) remains unchanged at 4% while the repo rate remains unaltered at 6.75%. The reverse repo rate under the LAF will remain unchanged at 5.75%, and the marginal standing facility (MSF) rate and the bank rate at 7.75%, RBI said in ...
RBI issues guidelines for gold monetisation scheme
Deepak Kumar | The Dollar Business A month after the government announced the Gold Monetisation Scheme, the Reserve Bank of India (RBI) on Thursday issued guidelines for banks to implement the scheme in order to expedite the mobilisation of gold in the domestic market and thus reduce India’s dependence on gold imports. The RBI has fixed a minimum limit to raw gold (bars, coins and jewellery) deposits, which should be equivalent to 30 grams of 995 fineness. However, there is no maximum limit for gold deposits under this scheme. Banks will issue the deposit certificate in equivalence of 995 fineness of gold. RBI said that individuals can deposit gold under one of the three schemes - short term ranging between one ...
RBIs decision not to cut interest rate a missed opportunity, say industry leaders
The Dollar Business Bureau The Reserve Bank of India’s decision to maintain status quo on key interest rates has evoked strong reaction from Indian industries. The central bank, in its bi-monthly monetary review announced on Tuesday, kept the rapo rate unchanged at 7.25% and the cash reserve ratio (CRR)— the proportion of deposits banks have to keep with the RBI— at 4%. Several industry bodies said that they are disappointed with the RBI’s move and suggested that a reduction in rapo rate (lending rate) would have revived the investment cycle in the economy. Industry leaders are of the view that the high cost of borrowing is a major factor behind the lack of investment in capital. This is creating obstacle for ...
