Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

RBI Raises Rates and CRR by 0.25%

20 Apr 2010Deepak Shenoy1 min read

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What is "RBI Raises Rates and CRR by 0.25%" about?
What category is this article in?: Economy
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 20 April 2010.
How long does this article take to read?: 1 min read
What topics does this article cover?: Interest rates

The Reserve Bank of India today raised the Repo rate to 5.25% and Reverse Repo rate to 3.75%, and increased the Cash Reserve Ratio to 6%. These are all 25 basis point increases.

End customer lending rates may not go up right away, say banks.

The rate increase was because the earlier rates were “more consistent with a crisis situation than a fast recovering economy”, said the RBI. Plus, inflation is too high – and it’s moved from supply issues to probably higher demand. And lastly, liquidity is required if only to let people buy government securities, which are going to see 36% more issuance than last year.