The Reserve Bank of India (RBI) kept its key interest rates unchanged on Friday but cut the cash reserve ratio by 50 basis points to bring enough liquidity in the banking system.
The real estate industry players and other stakeholders have largely welcomed the Reserve Bank of India's (RBI) decision to maintain the repo rate at 6.5 per cent, adding that the stability in the policy rate will promote market confidence by giving developers and homeowners.
In a much bigger relief to small and marginal farmers the Reserve Bank of India (RBI) on Friday has hiked the limit for collateral-free loans for agricultural farmers from Rs 1.66 lakh to Rs 2 lakh per borrower.
By this, 1.15 lac crore liquidity will be infused into the backing system. Governor Das outlined the inflation projections for FY24-25, pegging Consumer Price Index (CPI) inflation at 4.8 per cent. Quarter-wise, inflation is forecasted at 5.7 per cent for Q3 and 4.5 per cent for Q4. For F
"As a result, the Standing Deposit Facility (SDF) rate remains at 6.25 per cent, and the Marginal Standing Facility (MSF) rate, along with the Bank Rate, stays at 6.75 per cent," Das added.
The Indian stock market on Thursday rallied amid the anticipation of the policy rate cuts by the Reserve Bank of India (RBI). formation of BJP-led government in Maharashtra, and foreign buying, ending in the green territory.
The policy outcome is scheduled to be announced on Friday, December 6. The MPC faces the challenging task of balancing the need to stimulate economic growth amid a slowing economy while keeping inflation under control.
The Indian stock indices revived during the day on Thursday after a slow start at the opening, as investors anticipate a rate cut in the ongoing MPC meeting says market experts.
The recent decline in India's forex reserve from USD 705 billion to USD 656.58 billion is because the central bank is using forex reserve to manage currency volatility says a report by Union Bank of India.