Home, auto loan rates remain unchanged
The Reserve Bank of India was expected to cut the lending rate by at least 0.25 per cent while lending rate has been kept unchanged at 8 per cent.
The RBI was also expected to cut CRR to introduce liquidity in financial system, but the CRR remained same at 4.74 per cent.
RBI has raised the limit of export credit refinance from 15 per cent to 50 per cent in order to help export sector. RBI said this will boost liquidity and banks will be encouraged to increase credit flow to the export sector.
Opposing the argument that the reason for the record fall in growth is high interest rate, RBI said the bank lending rates are still lower when compared to the high growth period of 2003-2008.
The gross domestic product (GDP) growth for the fiscal 2011-12 also plummeted to 6.5 per cent.
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Reserve Bank of India may reduce interest rates
Source: Rediff.com
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