The wholesale price based inflation for
August moved up to 7.55% from 6.87% in the previous month. As inflationary
tendencies have persisted, controlling it is the top most priority. Inflation
risks still remain high; taking a cautious stance, Reserve Bank of India cut
CRR by 0.25%, but refrained from reducing lending rates in view of high
inflation. CRR cut would be effective from 22nd September.
The RBI decision, which comes days after a
slew of measures taken by the government to push growth, will release `.17,000
crore of primary liquidity into the system. It is a positive move, as a
mid-term policy it is very important.
Read
lot more in Rubber4U – 1st October 2012 issue
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