RBI released it's bi-monthly credit policy report on 29-09-2014. Repo Rate, Reverse repo rate, CRR, SLR and Bank rate have been kept unchanged.
Right inflation is on the radar of RBI and inflation rates are directly correlated with policy rates. That's why
RBI kept the SLR really low to 22%. This means banks can lend more money to borrowers and more liquidity in the economy.
RBI targeted 6% inflation by the end of 2014. Inflation rate was 7.8% in Agust 2014 wheras it was 9.52 in August 2013.
Right inflation is on the radar of RBI and inflation rates are directly correlated with policy rates. That's why
RBI kept the SLR really low to 22%. This means banks can lend more money to borrowers and more liquidity in the economy.
RBI targeted 6% inflation by the end of 2014. Inflation rate was 7.8% in Agust 2014 wheras it was 9.52 in August 2013.
Wholesale price index (WPI) decreased to 3.74% in August 2014 from 5.19% in July 2014.
Policy rates
Repo Rate
|
8%
|
Reverse Repo Rate
|
7%
|
Bank Rate
|
9%
|
SLR
|
22%
|
