RBI hikes Repo rate to 8%
June 11th, 2008
The Reserve Bank of India, making an urgent step, has announced the hike by 25 bps in the Repo rate from 7.75% to 8%. The Reverse Repo rate is untouched.
Reacting to the news, a senior official at the Canara Bank, speaking to a business television channel said that the Bank will take an action on a wait and watch mode. The official said that the bank has enough headroom at the moment.
In general, with the repo rate touching the 8% mark, banks will be increasing their lending rate as well as the deposit rates.
With the RBI announcement coming late in the evening after the closing bell of the Indian stock markets, the Banking stocks would be the most watched after once the markets open tomorrow.
Banking stocks today made decent moves on the stock charts today. Of the 16 stock BSE Bankex, 13 stocks advanced while only 3 stocks declined.
Top banking stock gainers of the day include Bank of India, Union Bank, HDFC Bank, Bank of Baroda, Axis Bank, STate Bank of India, Allahabad Bank amongst others.
Entry Filed under: Equity Markets, Banks & NBFC
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