Happy Mother's Day to All of you!

RBI Annual Monetary Policy Review 2011-2012

Main Points:

• hike in repo & reverse repo rate by 50 bps to 7.25% and 6.25% respectively.


• Cash reserve ratio remain unchanged at 6%.


• Increase in Savings bank deposit interest rate from the present 3.5% to 4% with immediate effect.


• Set a target of 6% inflation with an upward bias.


• Target growth rate at 8%.


• Starting new Marginal Standing Facility(MSF)-banks can borrow overnight from the MSF upto 1% of their respective net demand and time liabilities(NDTL) at 100 basis points above the repo rate with effective from 7May11.

Impact

• Increase in both deposit & lending rates


• Dearer Loans & higher EMIs


• Negatively affect sensitive sectors like auto & infrastructure


• Good news for Depositors-higher interest rate

International business

International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundary. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations.