Few Months back RBI had increased the MSF rate to support INR , by reducing liquidity in the market
The rate was increased from 8.25% to 10.25%
As the Rupee has appreciated and stabilised at 62 level , RBI has been relaxing the hard steps taken earlier
During last Mid quarter review on 20th Sept RBI had reduced it by 75 bps and just yesterday they again decreased it by 50 bps . So now the rate will be be 9%
This will reduce the overnight call Money rate and also the Fixed Deposit rate prevailing in the market for Bulk deposit
Banking stock will do better by this decison
No comments:
Post a Comment