Reserve Bank Of India (RBI) has announced the Credit Policy for Year 2011-12. This credit policy has increased the key Rates and Deposit rates to some extent to check Inflation.
Key Changes in RBI Credit Policy
1. REPO Rate (rate at which it lends to banks) to 7.25%
2. Reverse repo (rate at which it borrows) to 6.25%.
3. Saving Bank Deposit Rates to 4% from 3.5%
4. CRR has been left unchanged at 6%.
“The reverse repo rate will continue to be operative but it will be pegged at a fixed 100 basis points below the repo rate. Hence, the reverse repo will no longer be an independent variable,” Subbarao said.
RBI has pegged GDP growth rate for the current fiscal at 8 per cent against the government’s projection of 9 per cent. The economy grew by 8.6 per cent in 2010-11.
Read The RBI Credit Policy Text : Here
