i think RBI has started following the steps of BoE to give surprises. the hike in CRR by 50 bps is hardly expected by the market. RBI has given closer look to the liquidity in the money market and has taken steps to reduce this high liquidity (call money is hovering below 0.50% for a quite a long time)
RE:unexpected hike
by milind vora on Jul 31, 2007 07:59 PM Permalink
I guess u are not part of the market, it was very much expected that the RBI would hike CRR to suck in some amount. The removal of 3000 cap was also an expected move
