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“The RBI may send out a signal by reducing either the reverse repo or the repo rate by 0.25-0.50% to moderate capital flows,†Sinor said. The repo and reverse repo rates currently stand at 7.75 % and 6% respectively. While a hike in key rates might temper capital inflows, a cut in CRR would release some capital, which could be used by banks for increasing credit offtake and thereby spurring growth, which has slowed down in some sectors including manufacturing, textiles and consumer durables...
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The repo and reverse repo rates currently stand at 7.75 % and 6% respectively. While a hike in key rates might temper capital inflows, a cut in CRR would release some capital, which could be used by banks for increasing credit offtake and thereby spurring growth, which has slowed down in some sectors including manufacturing, textiles and consumer durables...
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