Finance, Forex and Investments

The Reserve Bank of India

Summary: The RBI has not changed interest rates but CRR has been reduced by half a percentage (50 basis points) to 10 per cent effective May 8, 1999. This step was taken to forestall the effects of an anticipated increase in government borrowing. With higher borrowing there might be a strain on the liquidity in the system. This strain would be higher if interest rates were lowered. Hence interest rates have been kept fixed. The RBI does not expect a large increase in corporate demand for liquid funds. Image Search Content inclusion

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