CRR Rate | Repo Rate | Reverse Repo Rate | RBI | Reserve Bank of India | Statutory Liquidity Ratio
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The Reserve Bank of India (RBI) will look to tighten monetary policy on Friday, 29th January 2010 to combat rising food price inflation.
To Check Inflation while keeping economy on recovery track, On Friday, the Reserve Bank of India (RBI) is expected to increase banks’ reserve requirements but leave interest rates unchanged.
RBI has increased cash reserve ratio by 75 bps to 5.75 Percent , the hike would happen in two stages, the first stage of hike of 50 bps will be effective from February 13 and the next 25 bps from February 27. RBI has not touched the the reverse repo rate which is at 3.25 percent and repo rate which is at 4.75 percent. CRR hike would suck out Rs 36,000 crore liquidity from the system.
he Repo rate, Reserve repo rate and CRR as of 03 January 2009 are as follows:
Repo Rate: 5.6%
CRR: 5%
Reverse Repo rate: 4.1%
Source: RBI
