Highlights of measures announced by India's central bank

IANS

National,Business

Sat, 01 Nov 2008: 

Mumbai, Nov 1 (IANS) Following are the highlights of the measures announced by the Reserve Bank of India (RBI) Saturday in a bid to reduce the cost of borrowings of commercial banks and infuse additional liquidity:

 

- Repo rate lowered by 50 basis points to 7.5 percent

 

 

- Statutoryiquidity ratio lowered 100 basis points to 24 percent

 

 

- Cash Reserve Ratio (CRR) cut by 100 basis points to 5.

5 percent

 

 

- Special refinance facility introduced against time liabilities

 

 

- Further ad hoc cut in statutory liquidity ratio to help mutual funds

 

 

- Central bank to continue sale of foreign exchange through agent banks

 

 

- Cut in cash reserve ration to release Rs.400 billion

 

 

- Securities sold to stabilise financial market will be bought back

 

 

- Global pressures on commodity prices abating

 

 

- Global turmoil has had knock-on effects on Indian financial markets

 

 

- International money markets yet to regain calm, confidence

 

 

- Developments will be closely monitored for swift action