
India's central bank cut its key interest rate by 0.25 percent to 7.25 percent Friday, partly due to the easing of the country's headline inflation. D. Subbarao, governor of the Reserve Bank of India, said another reason for the decision to lower the repo rate -- the rate at which the RBI lends to banks -- was that growth had slowed. However, the bank left the cash-reserve ratio unchanged at 4 percent. "Based on an assessment of the current and prospective macroeconomic situation, we have decided to reduce the policy repo rate under the liquidity adjustment facility [LAF] by 25 basis points from 7.5 percent to 7.25 percent," Subbarao said. He said the bank's assessment is that activity will remain subdued in the first half of this year with a modest pickup in the second half, subject to appropriate conditions developing. While inflation eased by March coming "close to the Reserve Bank's tolerance threshold, it is important to note that food-price pressures persist and supply constraints are endemic," the bank said on its website. Economic growth was forecast to be modest in the current fiscal year. Growth in the previous year was 5 percent, which was the lowest in a decade.
GMT 19:30 2018 Wednesday ,03 January
EU launches last crisis-battling finance reformGMT 17:13 2017 Thursday ,14 December
South Korea bans its banks from dealing in BitcoinGMT 19:16 2017 Monday ,11 December
Britain’s smaller banks jostle for business banking grantsGMT 19:31 2017 Sunday ,10 December
Britain’s smaller banks jostle for business banking grantsGMT 17:28 2017 Thursday ,07 December
India's central bank holds rates at seven-year lowGMT 17:55 2017 Sunday ,03 December
Saudi banks prepare for riyal coinsGMT 15:10 2017 Wednesday ,29 November
Societe Generale shares climb after cost-cutting planGMT 19:22 2017 Friday ,17 November
Deutsche Boerse taps top banker as new CEO
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Send your comments
Your comment as a visitor