News Release Details
Interest Rates and Debt Market
New Delhi 30-Jul-2007
Interest Rate: During the first half of 2007, RBI took a few drastic steps to calm down the increasing inflationary pressure on the economy; the most important one being the hike in the Cash Reserve Ratio (CRR). CRR was hiked from 5% in December 2006 to 6% in March 2007 in four tranches. This, along with other market factors, resulted in reduction of inflation from 6.6% (March 2007) to 4.3% (June 2007) and further decreased to 4.27% (first week of July 2007). Other interest rates like Bank Rate (6%), Reverse Repo Rate (6%) and Repo Rate (7.75%) remained unchanged in this quarter. Debt Market: During the first quarter of 2007-08, total government debt increased by 52.4% to Rs. 1,33,830 crore, while corporate debt decreased by 4.7% to Rs. 6,288 crore. Short-term Outlook: Comparatively slower credit growth, lower inflation and ample liquidity indicate toward a stable interest rate regime in the remaining three quarters of this year. For the complete snapshot, please <a href =/downloads/EcoMirror_30July.doc class=normallink target=_blank>click here >></a>
New Delhi 30-Jul-2007
Interest Rate: During the first half of 2007, RBI took a few drastic steps to calm down the increasing inflationary pressure on the economy; the most important one being the hike in the Cash Reserve Ratio (CRR). CRR was hiked from 5% in December 2006 to 6% in March 2007 in four tranches. This, along with other market factors, resulted in reduction of inflation from 6.6% (March 2007) to 4.3% (June 2007) and further decreased to 4.27% (first week of July 2007). Other interest rates like Bank Rate (6%), Reverse Repo Rate (6%) and Repo Rate (7.75%) remained unchanged in this quarter. Debt Market: During the first quarter of 2007-08, total government debt increased by 52.4% to Rs. 1,33,830 crore, while corporate debt decreased by 4.7% to Rs. 6,288 crore. Short-term Outlook: Comparatively slower credit growth, lower inflation and ample liquidity indicate toward a stable interest rate regime in the remaining three quarters of this year. For the complete snapshot, please <a href =/downloads/EcoMirror_30July.doc class=normallink target=_blank>click here >></a>