Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: VAT Audit :: TDS :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: list of goods taxed at 4% :: form 3cd :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: cpt
 
 
News Headlines »
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns
 Government may set threshold for probe into deposits to prevent harassment of taxpayers
 How to calculate capital gains tax
 April 1 still the target for GST: FM
 How to respond to CBDT’s tax compliance notice
 Goods & Services Tax (GST)(As On 01-01-2017)
 Excise, service taxpayers to migrate to GST portal by January 31

RBI ups repo and reverse repo rates by 50bps, CRR unchanged
May, 03rd 2011

Reserve Bank of India, in its first monetary policy review of 2012, raised repo and reverse repo rates by 50 basis points taking repo (rate at which it lends to banks) to 7.25% and reverse repo (rate at which it borrows) to 6.25%. However, the CRR has been left unchanged at 6%.

The rate rise was its ninth since March 2010, and exceeded market and economists' expectations for a 25 basis point rise, although the case for stronger action had been building since March headline inflation reached nearly 9 percent.

The central bank said high prices of oil and other commodities and the cumulative impact of its policy measures will lead to moderating growth of about 8 percent for the current fiscal year, assuming a normal summer monsoon and global crude oil prices of $110 a barrel.

Asia's third-largest economy grew by an estimated 8.6 percent in the year that ended in March 2011.

"Current elevated rates of inflation pose significant risks to future growth," Reserve Bank of India Governor Duvvuri Subbarao said in the bank's annual monetary policy statement.

"Bringing them down, therefore, even at the cost of some growth in the short-run, should take precedence," he said.

The Reserve Bank of India lifted its repo rate, at which it lends to banks, to 7.25 percent.

Under a new arrangement, the repo rate becomes the central bank's only independently varying policy rate, and the reverse repo rate , at which the RBI absorbs excess liquidity, will be pegged 100 basis points below the repo rate, or 6.25 percent after Tuesday's increase.

The RBI said it expects inflation to remain elevated near March levels in the first half of the fiscal year that began in April before easing in the second half, and set a target of 6 percent headline inflation, with an upward bias, for the end of the fiscal year in March 2012.

Subbarao said maintaining price stability is required to sustain medium term growth.

"Persistently high rates of inflation raise the risks of inflationary expectations becoming unhinged," Subbarao said.

Analysts polled recently by Reuters had expected 75 basis points of rate increases for the remainder of 2011, including Tuesday's move.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions