Key Policy Rate Unchanged, RBI cut the statutory liquidity ratio (SLR) to 23% from 24% earlier
The Reserve bank of India has cut the SLR (Statutory Liquidity Ratio) to 23% which was 24% earlier. However the key policy rate is unaltered. We also had the same expectation earlier today that RBI may not change its key monetory policy today. So the repo rate and reverse repo rate remaoned to be same as were earlier- 8% and 7% respectively.
Statutory Liquidity Ratio (SLR), which is the percentage of total deposits that lenders need to invest in the government bonds, has been reduced to 23% by RBI. The news affected the market as well and the imersed indices started floating on the greener surface again. Nifty, After making a low of 5155, is now again trading above 5200 level and we can expect a green closing today.