India’s central bank cuts key ratesApril 17th, 2012 - 12:42 pm ICT by IANS
Mumbai, April 17 (IANS) The Reserve Bank of India (RBI) Tuesday cut some key rates by 50 basis points in a bid to push industrial growth and stimulate economy — a move that may also see interest rates falling on housing, automobile and commercial loans.
Announcing the monetary policy for the current fiscal, RBI Governor D. Subbarao said the repurchase rate was being cut by 50 basis points to 8 percent, which will automatically see the reverse repurchase rate also drop to 7 percent from 7.5 percent.
The repurchase rate is the interest the central bank levies on short-term borrowings by commercial banks. The reverse repurchase rate is the interest on short-term lending. A cut in these rates rate reduces the cost of accessing funds for lending institutions.
A cut in these rates also eases money supply in the system by making it more attractive for commercial banks not to park their funds with the Reserve Bank of India in the form of government securities, and instead lend it for commercial purposes.
- India Inc welcomes rate cut - Apr 17, 2012
- India's central bank cuts rates to push growth (Lead) - Apr 17, 2012
- India Inc welcomes rate cut (Lead) - Apr 17, 2012
- India's central bank keeps key lending rates unchanged (Third Lead) - Jun 18, 2012
- India's central bank keeps key lending rates unchanged (Second Lead) - Jun 18, 2012
- India's central bank cuts interest rates to spur economy (Roundup) - Apr 17, 2012
- No impact of rupee slide on banks: SBI chief - May 28, 2012
- Inflation prompts India's central bank to hike rates again - Jul 26, 2011
- India's central bank keeps key lending rates unchanged (Fourth Lead) - Jun 18, 2012
- India Inc says cheers to surprise interest rates cut (Second Lead) - Apr 17, 2012
- PNB, Allahabad Bank hike lending, deposit rates - Jul 29, 2011
- Auto, realty sectors unhappy at interest rate hike (Lead) - Jul 26, 2011
- Union Bank of India hikes base rate by 50 basis points - Aug 06, 2011
- Auto, realty sectors unhappy at interest rate hike - Jul 26, 2011
- Reserve Bank of India keeps rates unchanged - Mar 15, 2012
Tags: automobile, bank levies, bank of india, basis points, commercial banks, commercial loans, commercial purposes, economy, form of government, government securities, interest rates, lending institutions, monetary policy, money supply, rbi governor, reserve bank of india, s central, subbarao, term borrowings