Tuesday, 24 January 2012

Market Rallies after Rate cut By RBI

NEW DELHI: The Reserve Bank of India in its quarterly review meet on Tuesday cut the cash reserve ratio (CRR) by 50 bps to ease tight liquidity pressure in the banking system.

The bank hiked rates 13 times since March 2010, the most aggressive pace of monetary tightening among its global peers, to deal with the persistently high inflation, including rising prices of food items. The RBI left interest rates unchanged in December. 


BSE has rallied by 250+ till 2 pm. Market has received the news with a lot of cheer. With this we finally have peaked on interest rates. 

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