RBI keeps Key Interest Rates Unchanged - Cuts SLR by 50 bps

The Reserve Bank of India (RBI) on Tuesday did not change the key interest rates as speculated. But, the apex bank cut the  statutory liquidity ratio (SLR) by 50 basis points. RBI kept the benchmark repurchase rate at 7.75 per cent.

Looking at the macro-economic indicators, it has been speculated by all that the RBI would cut the key interest rates while reviewing its credit policy for the month of January. But, there was not rate cut announcement by the apex bank that led to tumble the stock markets in India.

BSE Sensex fell by around 171 points and the Nifty down by 45 points. Investors were anticipated a rate cut but that was not happened as expected. The Governor of RBI Raghu Rajan said inflation was likely to at around 6 per cent by the end of January 2016 but other factors - monsoon and oil price could be great factors.

Bank stocks fell heavily following the no rate cut by the RBI today at BSE Sensex and Nifty.