The Monetary Board of the Central Bank on Tuesday decided to reduce the Statutory Reserve Requirement (SRR) on rupee deposit liabilities of commercial banks by 75 basis points to 7 % effective from the next reserve week commencing February 27 – releasing more money into the market.
In a statement it said the further reduction of the SRR will release rupee liquidity amounting to about Rs. 9 billion to the market, thereby providing more liquidity to the market. “It is expected that this measure, together with the measures adopted by the Central Bank in the recent past, would mitigate the negative consequences of the global credit crunch on the domestic economy,” it said. |
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