RBI cuts CRR by 50 bps to improve liquidity
RBI cuts CRR by 50 bps to improve liquidity by 1.2 lac crore
image for illustrative purpose
Mumbai, Dec 06: RBI cuts CRR by 50 bps to improve liquidity by 1.2 lac crore.
“RBI has cut cash reserve ratio (CRR) by 50 bps to improve liquidity by 1.2 lac crore. Increases ceiling on FCNR deposits by 200 bps from ARR + 200 bps to ARR + 400 bps, said Anil Kumar Bhansali of Finrex.
Rupee appreciated to 84.53 but then loses out to 84.62.
Suresh Darak, Founder, Bondbazaar says, ''As expected, RBI has held Repo rate despite lower GDP growth because of higher inflation of 6.21% in Oct, recent weakening of the INR against the dollar to 84.7, along with the need to boost overall savings rate in the economy.”
Bond markets had largely priced in a no rate change scenario with minor movements in the benchmark 10 yr G-Sec yield. Going ahead if inflation cools down, we may see a rate cut early next year to prop up the economy and boost GDP growth, he said.'
