Press Release

RBI has effected yet another rate cut by 100 basis points in the Cash Reserve Ratio (CRR) maintained by banks to 5.5% effective in two tranches. The first cut of 0.5% is effective from 25th October 2008 and the second 0.5% would be effective from 8th November 2008. Similarly there would be 0.5% cut in repo rate to 7.5% w.ef 3.11.2008 and a one percent reduction in the Statutory Liquidity Ratio or SLR to 24%. All these measures are aimed at improving the liquidity position of banks and a possible reduction in the banks lending rates. ( source Business Line 1-11-08)