In a surprise move RBI reduced key policy rates. Repo rate has been reduced by 25 basis points.
RBI governor Raghuram Raj said that low capacity utilization forced RBI to reduce policy, this will improve overall production levels. This decision came after the agreement between RBI and Central government to bring the inflation rate to 6% (band of 2%).
RBI governor Raghuram Raj said that low capacity utilization forced RBI to reduce policy, this will improve overall production levels. This decision came after the agreement between RBI and Central government to bring the inflation rate to 6% (band of 2%).
Now it's clear that Narendra Modi and RBI is in same direction of growth and price stabilization.
| Rate | % | Effective from |
|---|---|---|
| Bank rate | 8.50% | 4th March 2015 |
| Repo arte | 7.50% | 4th March 2015 |
| Reverse Repo rate | 6.50% | 4th March 2015 |
| Cash reserve ratio (CRR) | 4.00% | 9th February 2015 |
| Statutory Liquidity ratio (SLR) | 21.50% | 3rd February 2015 |
| Marginal standing facility(MSF) | 8.50% | 4th March 2015 |
Read in detail about :-
Impact of these policy rates
