Slideshow

Cheap Web Hosting Sites

Social Icons

'

Tuesday, October 25, 2011

RBI hikes policy rates

Today RBI governor declared the hike in key policy rates- Repo Rate was hiked by 25-basis point to 8.5 % from previous 8.25% and as Reverse Repo Rate lags Repo Rate by 100 basis points, Reverse Repo Rate automatically got hiked to 7.5%.
This was the 13th consecutive rate hike.
RBI kept the CRR (Cash Reserve Ratio) untouched at 6%. RBI expects the inflation to moderate by December and if this happens there shall be no need to further hike in the policy rates.
RBI also lowered the FY12 GDP growth estimate to 7.6% against previous 8%.RBi admitted that outcomes of previous monetary policy measures were stymied by the slippages of fiscal policy.
Within minutes of policy rates declaration bank Nifty took the major beating and was down by 212 points, Sensex and Nifty which were trading in green too slipped into red.
All Primary articles, fuel & power and manufacturing goods were responsible for the rising inflation.
In future, crude price shall be the major factor to be watched, if global crude prices remain moderated due to global recession, inflation could be tamed easily.

0 Comments:

Post a Comment

ShareThis

Related Posts Plugin for WordPress, Blogger...