India: Chamber for Foreign Trade
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Klaus D. Nebl(not a XING member)India’s RBI cuts repo rate by one point
The Reserve Bank of India on Monday unexpectedly cut its key short-term lending rate by 100 basis points to 8.0 per cent to alleviate pressures caused by the global financial crisis and maintain financial stability.
The cut, its first in more than four years, will take effect immediately and follows a slew of measures taken by policy makers in recent weeks to shore up domestic financial markets hit by the global financial market crisis.
EDITOR’S CHOICE
India’s central bank staff to strike - Oct-17India’s businesses feels the pinch - Oct-12ADB warns on Asia slowdown - Sep-16Global woes dampen Diwali spirits - Oct-17India names new central bank chief - Sep-01India growth dips as rates hit investment - Aug-29“In order to alleviate the pressures and, in particular, to maintain financial stability, the Reserve Bank of India has decided to reduce the repo rate under the Liquidity Adjustment Facility (LAF) by 100 basis points to 8.0 percent with immediate effect,” it said in a statement.
India joins central banks around the world, including the Federal Reserve and European Central Bank, in cutting interest rates and injecting huge sums of liquidity to unfreeze credit markets and prevent a sharp slowdown in economic activity.
The rate cut was unexpected in terms exact timing and size, although markets were increasingly expecting the RBI to trim its lending rate at a review scheduled for Friday.
Source: Reuters
- 20 Oct 2008, 11:45 am
