Impact of decreased key rates on Indian economy Parvez alam G4-116
Impact of decreased key rates on Indian economy
Impact of decreased key rates on Indian economyParvez alamG4-116
2Layout of presentationPolicy rates of RBIKey rates at presentReasons for rate cutimpact
Policy rates of RBI3SLR/OMOBank rateCRRRepo rate
These rates determine level of liquidity in the economy
4Key rates at present
Bank Rate9.00%8.75%Repo Rate8.00%7.75%CRR4.25%4%SLR24%23%
Third Quarter Review 2012-13
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9.787.24
Nov,2011Nov,2012WPI
Government can borrow more from RBI Impact on..Interest rates of commercial banks will decrease
Loans will be cheaper
Industries can get cheaper loans.Income will increase, so do inflation
All these increments lead to growth in GDPInterest rateGDPMoney mkt..Govrmnt exp.productionincome7
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