Wednesday, 4 June 2014

The Reserve Bank kept policy interest rates unchanged

Committed to keeping inflation under control, Raghuram Rajan RBI Governor of the Central Bank policy interest rate unchanged today at 22.5 percent but the SLR was reduced to 0.5 percent.

Statutory liquidity ratio (SLR), the minimum proportion of fixed deposits with banks and are demanding that the government has to invest in securities and its management remains in control of the Reserve Bank.

SLR by half a per cent to Rs 40,000 core to banks that will cash may be used to pay debt.

Latest business news is that this is second consecutive time the central bank's policy to encourage the growth of the repo interest rate is kept constant at 8 percent. Decrease in the demand of the industry and the business world was so cheap loans to banks and demand in the economy increased. Repo is the rate at which the central bank lends to banks cash for immediate needs.

The central bank cash reserve ratio CRR: is also kept unchanged at 4 percent. CRR is the portion of deposits that banks have to keep with the central bank and it does not interest them.

Rajan Gwarnn RBI said in a release 2014-15 at the second bi-monthly monetary policy to keep policy rates unchanged and September - 2013 the rise in interest rates between January 2014 Apsfitik be appropriate to give effect to their work in order to reduce inflationary pressures in the economy .

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