Finance Minister P. Chidambaram appeared disappointed over the RBI move and said the government would walk alone to face the challenge of growth.
The Reserve Bank of India (RBI) Tuesday cut cash reserve ratio (CRR) for banks by 0.25 percent but kept interest rates unchanged, despite pressure from the government.
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Nifty breaks the lower level of 5630 and trading at lower circuits. Market sentiments are not good for sectors like PSU Banking, Infrastructure.
RBI cuts CRR by 0.25%; keeps policy rates on hold
The Reserve Bank on Tuesday slashed the Cash Reserve Ratio (CRR) by 0.25 percent - the percentage of deposits banks keep with central bank - but refrained from reducing lending rates in view of high inflation.
Following the cut, CRR will now come down to 4.25 percent while the repo rate, at which the central bank lends to the banks, would remain...
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