Tuesday, January 29th 11:14 AM IST

India rate cut unlikely to hit Gold

# RBI  # India gold  # NBFC  # gold smuggling  

India's central bank the Reserve Bank of India (RBI) on Tuesday reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0 per cent to 7.75 per cent.

NEW DELHI(BullionStreet): Gold prices are unlikely to have any major impact after India,world's largest consumer, reduced repo and reverse repo with immediate effect.

Analysts said the reduction in rates are marginal and unlikely to impact prices in the country.

India's central bank the Reserve Bank of India (RBI) on Tuesday reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0 per cent to 7.75 per cent.

The RBI reduced reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, stands adjusted to 6.75 per cent.

RBI also cut cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.25 per cent to 4.0 per cent of their net demand and time liabilities effective the fortnight beginning February 9, 2013.

As a result of this reduction in the CRR, around`180 billion of primary liquidity will be injected into the banking system.

The RBI earlier said it will continue to monitor the asset prices ahead from a macro-prudential angle.

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