- 25 Jun 2008
Corporates and individual consumers, who are already bearing the brunt
of high prices and input costs, could soon be paying more for their
loans.
Interest
rates are set to go up further with the Reserve Bank of India on 24
June hiking both repo rates and Cash Reserve Ratio by 50 basis points
each.
While the repo rate has been hiked with immediate effect
to 8.50 per cent, the CRR will be hiked in two tranches, to 8.5% on
July 5, and to 8.75% on July 19.
The double-stroke
anti-inflationary measures are expected to tighten the liquidity in the
system, as the CRR hike would suck out around Rs 19,000 crore.
CRR is the proportion of deposits mobilised by banks and parked with the RBI for statutory requirement.
Banks do not earn any interest on the cash reserves. Repo rate is the rate at which RBI lends money to banks.
Most bankers said they would have to take the cue from the RBI signal, which is very clear and on expected lines.
The last time RBI hiked repo rate was on June 11, by 25 basis points to 8%. The CRR was last hiked in April 2008.
With
inflation touching 11.05% as on June 7, the highest in 13 years, the
RBI had indicated immediate measures to combat inflation.
0 comments:
Post a Comment