Latest News on RBI Credit Policy 2014: No Changes in REPO Rates
The Reserve Bank of India (RBI) kept its key policy rate on hold today (03 – June 2014). RBI would not raise interest rates further as long as inflationary pressures continued to ease.
While the repo rate was maintained at 8% and reverse repo rate at 7%, the SLR was cut by 50 basis points.
List of Major changes in Credit Policy by RBI:
- Reduces mandatory government bond holdings 25 basis points
- Cuts export credit refinance to 32% of eligible export credit from 50%
- Special term repo of 25 basis points to offset export credit cut
- Price pressures to remain in May, but seasonal
- If economy stays on course, no need for interest rate hike
- To allow domestic funds in currency derivatives
- Lifts individual USD remittance abroad to $125,000 vs $75,000
- Allows all residents and non-residents except citizens of Pakistan and Bangladesh to take out Indian currency notes up to Rs. 25,000 while leaving the country.
