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RBI Repo Rate Cut

| | Mar 04, 2015, at 04:50 pm
In its previous announcements RBI governor has already stated that he will not wait even for the policy review meeting if he found all the factors under a comfortable situation, and here today once again he did what he said in second time in a row since Jan 15, this Surprise cut was led by the fiscal deficit target set for the coming FY in the Union Budget presented last week, and brought huge cheer to the market with a 25 basis point Repo rate cut.

This rate cut comes as the very strong trigger for the market as this was the 2nd repo rate cut after January and second rate cut for the year FY 14-15 After a rate cut announcement, Bank Nifty the banking share index, was up in green in early trade and touched a record high of 9191. 30 share index Sensex crossed its 30,000 mark. reality stock also zoomed after this announcement on the hope that this action will certainly drag interest rate down and will help out the in reducing the interest burden on outstanding loans.

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