Highlights: RBI cuts key rate by 25 basis points, CRR unchanged
The RBI in its mid-quarter monetary policy review cut the repo rate by 25 basis points to 7.5 per cent. However, the central bank kept the CRR unchanged at 4 per cent.
BT Online Bureau
- Mar 19, 2013,
- Updated Mar 20, 2013 9:05 PM IST
Reserve Bank of India (RBI) on Tuesday cut repo rate by 25 basis points in its mid-quarterly review. Here are key takeaways:>> RBI cuts its key policy rate by 0.25 per cent to 7.5 per cent>> Leaves the cash reserve ratio (CRR) unchanged at 4 per cent.>> Growth has decelerated significantly: RBI>> Competitive interest rate necessary but not sufficient to revive investments: RBI>> High CAD and inflationary expectations limit possibility of further easing of rates: RBI.>> Budget committed to fiscal consolidation: RBI>> Deceleration service sector growth worrying: RBI>> Demand-supply gaps to keep pressure on inflation: RBI>> Headline inflation expected to remain at current levels through FY14: RBI>> Govt has to remain committed to fiscal consolidation: RBI >> Easing supply bottlenecks, improving project implementation key to growth: RBI>> Risk on CAD, inflation remain significant: RBI>> Govt has a critical role to play in pushing growth: RBI>> Limited headroom for further easing despite pro growth stance: RBI
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Reserve Bank of India (RBI) on Tuesday cut repo rate by 25 basis points in its mid-quarterly review. Here are key takeaways:>> RBI cuts its key policy rate by 0.25 per cent to 7.5 per cent>> Leaves the cash reserve ratio (CRR) unchanged at 4 per cent.>> Growth has decelerated significantly: RBI>> Competitive interest rate necessary but not sufficient to revive investments: RBI>> High CAD and inflationary expectations limit possibility of further easing of rates: RBI.>> Budget committed to fiscal consolidation: RBI>> Deceleration service sector growth worrying: RBI>> Demand-supply gaps to keep pressure on inflation: RBI>> Headline inflation expected to remain at current levels through FY14: RBI>> Govt has to remain committed to fiscal consolidation: RBI >> Easing supply bottlenecks, improving project implementation key to growth: RBI>> Risk on CAD, inflation remain significant: RBI>> Govt has a critical role to play in pushing growth: RBI>> Limited headroom for further easing despite pro growth stance: RBI
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