A Policy to inject investment.
Reserve Bank of India have reviewed Monetary policy on 29th January, 2013. As per the expectations of the industry RBI reduced Repo rate and CRR by 25 basis points. For the past one year RBI is trying to control inflation rate of India by maintaining the Interest rates at the same level. Even in the past reviews also RBI have not changed them. But due to recent policy changes of the Government and the downgrade of Indian GDP growth rate RBI have taken this measure. This reduction of CRR will infuse 18000 crores into Indian market. But India is presently in many problems like:
- The recent downgrade in US market.
- The Euro crisis is still remaining.
- Indian GDP estimation is downgraded from 5.8 to 5.6
- The foreign exchange market is also highly fluctuating.
- The fiscal deficit of India is increasing every year
- The current account deficit is also increasing due to Oil Prices rise.
Because of all the above reasons the sensex and nifty have experienced a rise in the initial hours but in the later they reduced and ended at a three week low.
Thus RBI is trying to maitain Inflation and also to develop investment pattern to increase production.