RBI today, in its bi-monthly credit policy has declared a rate cut of 50 basis points.
Highlights of the policy -
- CRR unchanged at 4%
- Revised Repo rate - 6.75%
- Revised Reverse Repo rate - 5.75%
- SLR currently unchanged but will be reduced 1% over a year beginning Mar 16 & will be 20.5% by Mar 17
- MSF & Bank rate - 7.75% (After adjustments)
This is a surprise gift by the RBI governor to the market & the Indian Economy where there were expectations for a rate cut of 25 basis points. When asked whether he is a Santa Clauz, Governor jokingly said that "I don't know why people call me Santa Clauz. My name is Raghuram Rajan & I do what I do"
Isn't it wonderful?
Friends please share your views on this rate cut by RBI & its probable impact on the market.
CAclubindia
