Burdened by rising inflation, the RBI has hiked the Cash Reserve Ratio by 50 basis points to 8% in two stages. The first 25 basis point CRR hike will be effective April 26. The second 25 basis point hike will take effect starting the May 10. This hike will drain Rs 18,500 crore from the system. This move follows liquidity management measures already taken by RBI after inflation surged past its threshold level of 5% in recent weeks. So far, nearly Rs 20,000 crore has been sucked out of the system through new bond auctions via the MSS window.
Apr 21, 2008
Experts differ on rate hike at April 29 RBI meet
Burdened by rising inflation, the RBI has hiked the Cash Reserve Ratio by 50 basis points to 8% in two stages. The first 25 basis point CRR hike will be effective April 26. The second 25 basis point hike will take effect starting the May 10. This hike will drain Rs 18,500 crore from the system. This move follows liquidity management measures already taken by RBI after inflation surged past its threshold level of 5% in recent weeks. So far, nearly Rs 20,000 crore has been sucked out of the system through new bond auctions via the MSS window.
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