Watch video: RBI surprised with a CRR rate cut, says our expert

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feBureau: NEW DELHI, Jan 31 2013, 14:03 IST

RBI surprised with a CRR rate cut. FE explains what it entails. Shedding its 9-month long hawkish monetary policy stance, the Reserve Bank of India (RBI) today cut its key interest rates by 0.25 per cent and released Rs 18,000 crore additional liquidity into the system to perk up growth through reduced cost of borrowing. RBI Governor D Subbarao in the third quarter monetary policy review surprised the market by cutting short-term lending rate called repo by 0.25 per cent to 7.75 per cent and Cash Reserve Ratio (CRR) by similar margin to 4 per cent, releasing Rs 18,000 crore primary liquidity into the system.

Video: RBI rate cut: FE's Sunil Jain explains

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Rupee pares early gains to end only 14p higher after RBI rate cut Rekindling the recovery hopeIn see-saw trade, Nifty edges up by six pts to end at 6,055.75 SBI cuts base rate by 5 basis points

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RSS'S TODAYS ATTITUDE

RAMESH | 31-Jan-2013Reply | Forward

Sad, RSS has not realized by weakening BJP and particularly its role in the removal of Sri Advani, also hoisting a pradesh level leader Sri Gadkari, it has in every manner helped and helping congress. For whose sake? GOD only knows. ramesh