Tuesday 31 July 2012

World Official Gold Holdings



RBI keeps policy rates unchanged, SLR cut to 23%

The Reserve Bank of India (RBI) in its April-June quarter monetary policy on Tuesday left the key policy rates unchanged. However, it has cut the statuitory liquidity ratio (SLR) to 23% from 24% earlier. This policy action was by and large in-line with CNBC-TV18 poll. Now, the repo rate or the rate at which banks borrow from RBI remained at 8% while the reverse repo rate at which, the banks lend to RBI at 7%.

SLR is the percentage of total deposits that lenders need to invest in the government bonds. The reduction is aimed at ensuring free flow of credit growth through enough liquidity in the system.

Cash Reserve Ratio or CRR is the portion of total deposits that banks are required to keep with the central bank also remained unchanged.

Meanwhile, the central bank raised the baseline projection of WPI based inflation to 7% for March, 2013 as against the earlier projection of 6.50%.

"The deficient and uneven monsoon performance so far will have an adverse impact on food inflation. Notwithstanding some moderation, international crude oil prices remain elevated. This, coupled with the pass-through of rupee depreciation to import prices, continues to put upward pressure on domestic fuel price inflation," RBI said in the first quarter review of the credit policy 2012-13.

Interestingly, India is ranked lowest in rating among all BRIC countries. In its macroeconomic policy, RBI alerted the government of the need to revive investment climate. This can be done through policy actions like removal of bottlenecks in infrastructure sector, liberal foreign direct investment norms and so on.

After a gap of nearly three years, RBI had cut policy rates in annual monetary policy announced on April 17 by 50 bps.


NF Fut 31-July
























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Xpert Nifty
31-July

--:: Live Market Update :::--

NF Fut open near 5232 just above our support level of 5228.
Today RBI will announce the next policy near 11:00 AM. Be careful.

Just to remind you that few days back we have updates a source report of Bankers Poll for today RBI policy. If you dont remember then CLICK HERE to review it again.

No heavy change in RBI policy is expected today, Still lets wait & watch.

Upper Side Resistance 5266-5312
Lower Side support 5205-5171

Regards,
Team XN