Wednesday, January 26, 2011

RBI new monetary policy, Jan 2011

Hi fellows
Happy Republic Day. RBI has announced its monetary policy and made some changes in Repo rate, Revere repo rate.

1. Repo Rate:It is the rate at which Reserve bank lend money to other banks.Previously it was 6.25%. It has beed raised now by .25% to 6.5%

2. Reverse Repo Rate: It is the rate at RBI borrows money from other banks. It
has been raised from 5.25% to 5.50%

3. Cash reserve ratio: No changes have beed made in CRR and it has been kept constant at 6%.

4. GDP forcast at 8.5% in 2010-2011

The changes have been taken in view of rising inflation rates and bring more liquidity in the market.

Cheers

Lalit Kumar

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