RBI increases Repo Rate to 8%
RBI has yet again increase the policy rates. * Repo Rate hiked by 50 bps to 8%, effective immediately * Reverse Repo Rate adjusts 50 bps higher to 7% * Cash Reserve Ratio kept unchanged at 6% All bank related interest rates can be seen here - MAIN HIGHLIGHTS * Retains FY12 GDP growth projection around 8% * Ups Mar-end inflation projection to 7% vs 6% earlier * Inflation to remain elevated for "few more months" * Cuts FY12 M3…
Analysis of RBI Policy
The highlights of the Reserve Bank of India's Monetary Policy Statement for 2011-12 (Apr-Mar): MEASURES * RBI Policy shifts to single rate regime * Operating target of policy to be weighted average call money rate * Hikes Repo Rate 50 bps to with immediate effect * Ups Reverse Repo Rate 50 bps to with immediate effect * Keeps Bank Rate unchanged at * Keeps Cash Reserve Ratio unchanged at * Ups savings bank rate to from with immediate effect…