RBI
ECONOMY RBI cuts policy rates by 0.25 pc Jan 29, 2013 Home and Auto loans would become cheaper as Reserve Bank cuts Repo and CRR by 25 basis points in its quarterly monetary policy review and Projects GDP growth to 5.5 from the earlier estimate of 5.8 per cent. Shedding its 9-month long hawkish monetary policy stance, the Reserve Bank today slashed its key interest rates by 0.25 per cent and released Rs 18,000 crore additional liquidity into the system to perk up growth through reduced cost of borrowing. RBI Governor D Subbarao in the third quarter monetary policy review surprised the market by cutting short-term lending rate called repo by 0.25 per cent to 7.75 per cent and Cash Reserve Ratio (CRR) by similar margin to 4 per cent, releasing Rs 18,000 crore primary liquidity into the system. While repo rate cut will reduce the cost of borrowing for individuals and corporat...