Recently, the biggest news came from RBI. The bank repo rate is unchanged at 4.75%. The RBI CRR is also unchanged. The bank has raised nominal SLR only 1% from 24% to 25%. According to the experts, the minimal hike will not impact on liquidity.

The GDP forecast for financial year 2010 was also unchanged at 6%. On the home loans also, there is no impact with the announcement of RBI Monetary policy. On this occasion, Governor Subbarao told the chief executives of commercial banks at the central bank’s headquarters,

“As always, the Reserve Bank will endeavor to ensure price stability and anchor inflation expectations. It bears emphasis that the Reserve Bank is mindful of its fundamental commitment to price stability. It will continue to monitor the price situation in its entirety and will take measures as warranted by the evolving macroeconomic conditions swiftly and effectively.”

Bank rate unchanged with 6%, Repurchase rate unchanged with 4.75%, Reserve repurchase rate unchanged with 3.25%, Cash reserve ratio unchanged with 5% and SLR hiked only 1% on this occasion by RBI.

In April, the repo rate and the reserve repo rate were cut by 50 basis points. RBI had cut 5% to 3.5%.

The raise of SLR to 1% will be effect from November 7th, 2009. Currently, CRR is 5%, Repo is 4.75% and 3.25% respectively which are remained unchanged by the RBI.

These minor changes affect the BSE, Sensex, Nifty and NSE. Minor losses were seen that time with the opening of stock exchange. However, it is being said by the experts that there will be no impact on liquidation by the minor changes.

The minimum hikes in statutory liquidity ratio has made mandatory for the banks also to invest more funds in specified securities. This investment should be against of deposits and some liquid cash.