RBI keeps repo rates unchanged, CRR cut by 0.5%

Tuesday, January 24, 2012, 11:06:31 (IST)
NEWS FLASH The Reserve Bank of India today announced its review of the third quarter monetary policy. The central bank did not touch repo rate (the rate at which the RBI lends funds to banks) and reverse repo rate (at which the RBI borrows money from banks). However, the cash reserve ratio (CRR), which is the amount of funds that the banks have to keep with RBI, has been cut by 0.5 per cent to 5.5 per cent. A reduction of CRR will increase the liquidity in the economic system. Stock markets jumped after the central bank announced a CRR cut. The Sensex and Nifty both surged over 0.75 per cent after RBI's announcement.   Unsubscribe   News updates @ www.ndtv.com

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