Calibrated Approach
At its monetary policy review early last month the Reserve Bank of India kept the key rates unchanged and cut the Statutory Liquidity Ratio (SLR) by 50 basis points. Cutting SLR can boost morale and build confidence, infusing additional funds in the banking system, eventually offering a little more freedom for banks to expand credit to non-governmental sectors. The apex bank has maintained the repo rate at 8%[Read More…]