First rate cut in 3 years, repo rate cut by 50 bps-news17042012

Reserve Bank of India (RBI) cuts Repo Rate by 50 bps to 8%. Cash Reserve Ratio ( CRR) remains unchanged at by 4.75% effective April 17. Reverse Repo Rate stands at 7%.RBI beats expectations; reduces repo rate by 50 bps but tone remains hawkish

•     RBI expects credit growth at 7.3% in FY13.
•     Upside risks to Inflation persist.
•     Imperative to hike petrol prices.
•     Liquiduty moving towards RBI comfort zone.
•     Space for further cuts in policy rates in limited.
•     Expect industry to perform better.
•     Expect crude prices to remain high.
•     Bank not to levy pre-payment charges on home loans.
•     Limited room for further cuts.
•     Liquidity conditions have eased in recent weeks.
•     Financing current a/c deficit a challenge.
•     Deviation of growth from trend is modest.
•     Global outlook looks slightly better in FY13.
•     Leading indicators show turnaround in IIP.
•     Food Inflation has risen again.
•     Expects non-food manufacturing Inflation to remain contained.
•     MSF rate stands at 9%.
•     MSF limit raised to 2% as compared to 1% earlier.
•     Banks exposure to gold loans reduced to 7.5% of capital funds as against 10% earlier; negative gold loan NBFCs
•     Pre-payment penalty on home loans abolished.
•     RBI remains concerned about inflationary pressures.
•     GDP growth for FY2013 likely at 7.5%.

Date	BPS	Reverse Repo	BPS	Repo
17-Apr-12	-50	7.00	-50	8.00
15-Mar-12	U	7.50	U	8.50
20-Jan-12	U	7.50	U	8.50
16-Dec-11	U	7.50	U	8.50
25-Oct-11	25	7.50	25	8.50
16-Sep-11	25	7.25	25	8.25
26-Jul-11	50	7.00	50	8.00
16-Jun-11	25	6.50	25	7.50
03-May-11	50	6.25	50	7.25
17-Mar-11	25	5.75	25	6.75
25-Jan-11	25	5.50	25	6.50
02-Nov-10	25	5.25	25	6.25
02-Sep-10	50	4.75	25	6.00
27-Aug-10	50	4.25	25	5.75
02-Aug-10	25	4.00	25	5.50
20-Apr-10	25	3.75	25	5.25
19-Mar-10	25	3.50	25	5.00
29-Jan-10	U	3.25	U	4.75
27-Oct-09	U	3.25	U	4.75
28-Jul-09	U	3.25	U	4.75
21-Apr-09	25	3.25	25	4.75
U = Unchanged

   
....more info