| Tuesday, Jul 26, 2011 |  |
| | | RBI HIKES REPO, REVERSE REPO RATE BY 50 BPS
Continuing its anti-inflationary stance, the Reserve Bank of India (RBI), on Tuesday, raised the repo and reverse rates by 50 basis points (bps) each. The rate hike was a shocker for markets which was expecting 25 bps hike. The rate hike has taken the repo rate to 8% and the reverse repo has touched 7%. However, the cash reserve ratio remains unchanged at 6%. The rate hike is the 11th since March 2010, making the RBI one of the most aggressive inflation fighters among central banks. D Subbarao said, "Inflation continues to be a dominant macro concern...(but) we see no evidence of broad-based slowdown in growth." RBI has upped its March-end inflation target to 7% as against the previous estimate of 6%. It has kept its FY12 GDP growth estimate unchanged at 8%. However, it has cut its FY12 credit growth projection to 18% compared to earlier 19%. read more | | | | | | | | AT A GLANCE | | BSE | 18518.22 | -353.07 | | NSE | 5574.85 | -105.45 | | TURNOVER Rs. 248,590 cr | | BSE CASH Rs. 2,814 cr | | NSE CASH Rs. 12,191 cr | | NSE F&O Rs. 233,584 cr | | | | BULLION | | GOLD | 23092 | -138 | | SILVER | 59426 | -391 | | | | CRUDE | | NYMEX | 102.25 | -0.08 | | BRENT | 116.8 | -1.14 | | | | FOREX | | $ / Re | 44.175 | -0.22 | | £ / Re | 72.35 | +0.02 | | € / Re | 63.926 | -0.12 | | | | EVENTS |
| | 27 July |  | Lokayukta To Submit Report | | I-T Team From Chennai To Quiz A Raja | | EPFO's Central Board Of Trustees Meet To Appoint A Separate Custodian For Its Securities | | L&T Finance's IPO To Open | | Foreign Ministers Of India & Pakistan Meet To Discuss All Aspects Of Bilateral Relations | | 7th International Special Economic Zones Convention, Le Meridien, New Delhi | |
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| | 28 July | | SEBI Meet On Achuthan Takeover Code Report | | SEBI Board Meet To Take Up NSDL Issue | |
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| | CREDIT POLICY REACTIONS |
| | "Notwithstanding signs of moderation, inflationary pressures are clearly very strong... inflation continues to be the dominant macroeconomic concern. On the basis of this assessment, it has been decided to increase policy repo rate by 50 basis points from 7.5 to 8% with immediate effect."
D Subbarao
RBI Governor "We are already seeing a slowdown and moderation in the order intake. Investor confidence is going to further reduce with increased repo and reverse repo rates. The government is aware that this is going to reduce investments and GDP growth."
MS Unnikrishnan
MD, Thermax "The Reserve Bank of India has sought to give a strong signal to further moderate inflation and check inflationary expectations. With this policy adjustment, we will be able to get back to a more comfortable inflation situation that takes us to the year-end inflation level of 6 to 7%."
Pranab Mukherjee
Finance Minister |
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