The RBI has tightened money supply in the Indian markets by raising the CRR by 25 bps and in a surprise move raised the repo rate by 50 bps taking it to 9.0% [This is the rate at which banks will borrow from RBI] We had expected a 25bps repo rate hike.
GDP growth projection for 2008-09 revised from the range of 8.0-8.5 per cent to around 8.0 per cent, barring domestic or external shocks. While the policy actions would aim to bring down the current intolerable level of inflation to a tolerable level of below 5.0% as soon as possible and around 3.0 per cent over the medium-term, at this juncture a realistic policy endeavour would be to bring down inflation from the current level of about 11.0-12.0 per cent to a level close to 7.0% by March 31, 2009.
The Indian Stockmarket has reacted sharply to the news and the BSE SENSEX was down 500 points. Banking and Real Estate Stocks are the worst Hit.
Popular Posts
-
Benefits Of The 1031 Tax Exchange For Property Investors https://flic.kr/p/iQok7n If you’re a property investor - or are consid...
-
The Nifty India Manufacturing Index includes companies from the Nifty 100, Nifty Midcap 150 and Nifty Smallcap 50 Index from eligible basic...
-
Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers.... -
What is Nifty Bees? Nifty BeES, the first ETF in India, was introduced by Benchmark Asset Management Company in 2002 and currently m... -
Nifty 50 PR 2x Leverage Index. Nifty 50 Price Returns 2x Leverage Index is designed to generate multiple time return of the underlying index...
