The State Bank of India (SBI) (SBIN.NS) (500112.BO) (OTC: SBKJY) has become the first bank in India to link its short-term loans and large savings deposits rates to the Reserve Bank of India's (RBI) repo rate
earlier this year, Business Today has reported online.
The Reserve Bank of India (RBI) in its third bi-monthly policy had reduced repo rate
by 35 basis points from 5.75 per cent to 5.4 per cent from August 7.
Commenting on the monetary policy statement announced by RBI today, Mr Sandip Somany, President, FICCI said, "With benign inflationary conditions and weakening economic growth, industry had expected an accommodative stance from RBI and today's 25 bps cut in repo rate
is a welcome move.
The Reserve Bank of India (RBI) has cut the repo rate
by 25 basis points to 6 per cent today.
In a late Friday decision, the bankannounced that it has linked interest rate on savings account with a balance above Rs100,000 and short-term loans to the Reserve Bank of India's repo rate
, effective from May 1.
Five out of the six-member Monetary Policy Committee (MPC) voted in favour of keeping the repo rate
unchanged at 6.50 percent and the reverse repo rate
at 6.25 percent.
The central bank increased its repo rate
, at which it lends to commercial banks, to 2.25 percentage points and its reverse repo rate
, at which commercial banks deposit money with the central bank, to 1.75 percentage points.
Hikes reverse repo rate
but leaves repo rate
unchanged to reduce gap
Abstract: This paper presents the empirical results of the volatility transmission of money market overnight repo rate
along the yield curve in Pakistan.
KARACHI -- THE State Bank of Pakistan has linked the minimum return on bank deposits with its repo rate
and set it at 50 basis points below the repo rate
, effective from October 1.
average monthly repo rate
made up 8.5%, having dropped by 0.3 pct points over Q2.
Cooling of interest rates should come as no surprise with wholesale price inflation easing to a 40-month low of 5.96% in March 2013, giving the Reserve Bank of India (RBI) leeway to reduce the repo rate
by 25 basis points (bps) to 7.25% at the beginning of May 2013.