RBI may cut CRR, repo by 0.25%: Bankers
New Delhi: The Reserve Bank of India (RBI) may cut interest rate by about 0.25 per cent and release more liquidity in its annual credit policy meet tomorrow in the light of sagging factory output and moderation in economic growth, say bankers.
"My personal stance is that cut CRR...I would expect 75 basis point cut in CRR," SBI Chairman Pratip Chaudhuri said.
Last month, RBI slashed CRR (cash reserve ratio) – the percentage of deposits that banks have to keep with the RBI – from 5.5 per cent to 4.75 per cent. With this, the central bank had infused Rs 48,000 crore into the economy.
Indian Overseas Bank Chairman and Managing Director M Narendra said, "Given the microeconomic condition, there is expectation that the RBI would cut both repo and CRR by 25 basis points (0.25 per cent)".
Showing persistent sluggishness in the economy, industrial production growth slowed to 4.1 per cent in February this year,.
DHANANJAY SINGH
PGDM 2ND SEM.
"My personal stance is that cut CRR...I would expect 75 basis point cut in CRR," SBI Chairman Pratip Chaudhuri said.
Last month, RBI slashed CRR (cash reserve ratio) – the percentage of deposits that banks have to keep with the RBI – from 5.5 per cent to 4.75 per cent. With this, the central bank had infused Rs 48,000 crore into the economy.
Indian Overseas Bank Chairman and Managing Director M Narendra said, "Given the microeconomic condition, there is expectation that the RBI would cut both repo and CRR by 25 basis points (0.25 per cent)".
Showing persistent sluggishness in the economy, industrial production growth slowed to 4.1 per cent in February this year,.
DHANANJAY SINGH
PGDM 2ND SEM.
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