Free Press Journal
  • policy rate cut

    Depositors worried of further rate cuts

    Last week’s decision of the Monetary Policy Committee was keenly awaited. Would they cut the Reserve Bank of India’s policy rate by 25 or 50 basis points? (One basis point is one hundredth of one percent). This is called the repo rate, at which banks borrow emergency funds from the RBI against some collateral. It is called the “overnight window”, and helps banks tide over temporary mismatches in demand and supply of funds at