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CRR,Repo Rate,Reverse Repo Rate,Comparison Of Rates With Other Asian Countries:


Today Reserve Bank Of India reduced repo rates by 0.25% to 7.50% from 7.75%.

What is CRR,Repo Rate & Reverse Repo Rate:

CRR – Cash Reserve Ratio: As name indicates Banks need to keep certain ratio of deposits with Reserve Bank Of India which is called as Cash Reserve Ratio.Current CRR is 4% which means that if there is deposit of Rs.100,bank will able to utilize Rs.96/- for lending purpose.This is the most effective tool for RBI to increase / decrease liquidity which in turn affects the inflation.

Repo Rate:The rate at which RBI lends money to banks or other financial institutions.

Reverse Repo Rate: Its opposite to Repo rate where RBI borrow money from banks & reverse repo rates are typically 1% lower than that of Repo rates.

CRR,Repo rates directly affects the loan rates & deposit rates offered by banks & RBI need to make a balance of Growth & inflation while considering about the same.

Current interest rates:

Saving-Ideas.com - CRR,Repo rate,Reverse Repo Rate

Bank Rate (Repo Rate) & Inflation comparison with other Asian countries:

We will take a view Bank rates & current CPI inflation rates with other few Asian Countries:

 

Name Of Country

Bank Rate

CPI Inflation Rate

India – 

7.50%

 6.84%

China

6%

 3.20%

Japan 

0.1%

 -0.30%

Pakistan

9.50%   7.40%

SriLanka

 7.50%  9.80%

Nepal

 9.95%  3%

Singapore

 0.04%  3.60%

Saudi Arabia

 2%  3.90%

Bangladesh

7.25%

 7.87%

Category: Fixed Income

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