Reserve Bank to cut repo rate by 50 bps

Published: Sunday, March 1, 2009, 12:32 [IST]
 
Reserve Bank to cut repo rate by 50 bps

New Delhi, Mar 1: Not worrying about the inflation, Reserve Bank may now cut the key rates to provide boost to the sagging demand because economy is growing at a low pace of over 5 per cent in Oct-Dec period, the lowest in any quarter.

The Bank has planned to cut benchmark rates by 50 basis points (bps) by the end of March keeping in mind that inflation is easing week by week.

For the week ended Saturday, Feb 14, the inflation declined to 15-months low of 3.36 per cent. Short term lending (repo) rate currently stands at 5.5 per cent while short-term borrowing (reverse repo) rate is 4 per cent.

OneIndia News

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