Flash News!! --------------- RBI keeps interest rates unchanged after cutting them in each of its previous three policy reviews. Repo Rate stands at 7.25pc and CRR at 4pc. Key reasons for this move can be cited as: - Fear of inflation: thanks to a falling rupee - Global Uncertainty: citing to risks of reversal of capital flows from emerging markets. Markets Response ---------------------- Markets were little affected by the policy decision. The 10-year bond yield briefly fell, while stocks extended losses marginally to trade down 0.4 percent. This again was predictable as the act of RBI is in line with the expectation. A Reuters poll released on Thursday showed 28 of 38 analysts expected the RBI to hold the repo rate steady and 30 of 34 saw the CRR unchanged.
Posted on: Mon, 17 Jun 2013 06:32:35 +0000