RBI cuts CRR by 150 bps, inflation dips to 11.8 per cent

The RBI concerning over the global market meltdown, has cut the CRR by 150 bps to 7.5 per cent. The finance minister earlier had assured to infuse more money into the market to tackle the liquidity in the market. In the latest development, the inflation dips to 11.8 per cent from 11.99 per cent. This is just like win-win situation for RBI, as it infused more money to protect the banking system from the global credit crisis. While it was expected that more liquidity into the market would affect the inflation further, the inflation dips rather escalating further. But no it seem the economy has been recovering from the impact of world crisis and recession. However the growth of the economy would slower than expected, according to media reports.