Highlights of measures announced by India’s central bank

November 1st, 2008 - 4:00 pm ICT by IANS  

Mumbai, Nov 1 (IANS) Following are the highlights of the measures announced by the Reserve Bank of India (RBI) Saturday in a bid to reduce the cost of borrowings of commercial banks and infuse additional liquidity:- Repo rate lowered by 50 basis points to 7.5 percent

- Statutory liquidity ratio lowered 100 basis points to 24 percent

- Cash Reserve Ratio (CRR) cut by 100 basis points to 5.5 percent

- Special refinance facility introduced against time liabilities

- Further ad hoc cut in statutory liquidity ratio to help mutual funds

- Central bank to continue sale of foreign exchange through agent banks

- Cut in cash reserve ration to release Rs.400 billion

- Securities sold to stabilise financial market will be bought back

- Global pressures on commodity prices abating

- Global turmoil has had knock-on effects on Indian financial markets

- International money markets yet to regain calm, confidence

- Developments will be closely monitored for swift action

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