RBI does it again! Cuts interest rates - Views on News from Equitymaster

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RBI does it again! Cuts interest rates

Mar 1, 2001

The Reserve Bank of India (RBI) has cut interest rates yet again. This time around the RBI has cut the bank rate by 50 basis points from 7.5% to 7%. This is following the Finance Minister’s move to cut interest rates on tax-free small savings instruments by 1-1.5% in yesterday’s budget. The move has come much faster than anticipated and the RBI has surprised many. This seems to becoming a habit with the RBI. It had effected a 0.5% cut in both the cash reserve ratio (CRR) and the bank rate on February 16 earlier.

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