Wednesday, March 4, 2009
The Reserve Bank of India cuts key rates
The RBI (Reserve Bank of India) has cut the repo rate by 50 bps to 5% and the reverse repo rate by 50 bps to 3.5% with immediate effect. The RBI is trying to help the economy grow, specially the housing and the construction sectors, by cutting key rates. This would force the banks to reduce interest rates. You should expect some small upward movement in stocks of realty and construction companies tomorrow. You should also expect the Indian markets to stabilize tomorrow. There could be a minor upward movement too.