UwidoNews

The Reserve Bank of India on Friday increased mandatory cash reserve of banks held by it by 75 basis points in a bid to suck excess liquidity to combat rising inflation.However, short-term lending and borrowing rates between RBI and banks were kept unchanged,

The countrys largest private sector lender, ICICI Bank, does not see immediate pressure on interest rates, but expects them to rise from the second quarter (July-September) of next financial year due to increase in demand for credit. Now-RBI may not increase policy rates in April policy: Kamath-No pressure on interest rates over next 9 months: Kamath-'Consumption, investment will drive growth'-Banks to review teaser home loan plans in March-Bankers see huge challenges in next financial year-

The Reserve Bank of India (RBI) Deputy Governor, Mr KC Chakrabarty on Friday said banks lending rates to certain segments like short-term corporate loans could go up due to the existing mis-pricing, but felt that the overall rates will be stable .

Reserve Bank of India (RBI) has kept the key rates like cash reserve ratio (CRR), repo rate and reverse repo rates unchanged in its mid-term credit policy that was released by the central banker of India today.

Shares of fourteen banks gained 0.05% to 6.23% at 12:21 IST on BSE on speculation the central bank will keep key policy rates unchanged at its quarterly monetary policy review next week.

Public sector lenders Central Bank of India and Andhra Bank reduced their benchmark prime lending rates (BPLR) today.While the former brought it down by 0.50 per cent to 12 per cent, the latter by 25 basis points to 12.25 per cent from the current 12.50 per cent.

As a part of the Government’ economic booster package, the RBI cut repo rates and reverse repo rates by 100 bps on Saturday, sending a strong signal to banks to cut rates and stimulate growth.
“Credit demand has been slackened. Banks will be urged to cut lending rates, which will come though reduction in deposit rates,” RBI Governor D Subbarao said.

UCO Bank is set to reduce its prime lending rate by around 100 basis points from January, Chairman and Managing Director Subodh Kumar Goel indicated here on Tuesday.Participating in an interactive session on Global financial meltdown: impact on the Indian economy, organised by the Merchants Chamber of Commerce (MCC), he said that while the banks board would make the final decision on December 26, it proposed to bring in a reduced interest rate regime on its lending and deposit rates from January 1, 2009.

The Bank of Japan policy board Friday kept its key target rate unchanged at 0.1%, maintaining a super-easy monetary policy