India CRR cut likely |
The Reserve Bank of India could cut the CRR in a prelude to the monetary policy review meet scheduled to be held on April 7. A cut in the cash reserve ratio (CRR), the portion of deposits which the banks are required to have in cash with the central bank, would increase liquidity in the system. The CRR was left unchanged at 4 per cent in the last policy review held on March 4. It is believed that a cut in CRR daily requirement at this juncture by the RBI may have a profound impact on transmission mechanism by cutting CRR as a prelude to April 7.
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