The benchmark equity indices made further declines into the negative territory during the previous one hour of trade and hit new intraday low as selling intensified among rate sensitive stocks after the Reserve Bank of India (RBI) in its first monetary policy review of 2012, raised repo and reverse repo rates by 50 basis points (bps), thus breaking its calibrated approach. The repo rate now stands at 7.25%, while reverse repo rate is at 6.25%. However, the CRR has been left unchanged at 6%. The market participants were expecting the 25 bps hike. Such a move would help ease liquidity in the banking system and cool down the inflation in near week.
About Bhaveek PatelBhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.
Govt./RBI is just cutting the pockets of borrowers under so called measure to control inflation by increasing the interest rate time and again.
You are right Rahul, Govt/RBI must look for some other measures to control inflation, instead of raising interest rates it should look for increasing agricultural production. Reply your views about rate hike by RBI.
OurNifty.com Team