In a bid to control inflation,the Reserve Bank of India has announced today a steep hike in Cash Resrve Ratio to be maintained by the banks form existing 6% to 6.75%,which in effect would mean mopping up of extra money available for credit to be extended to all sectors. Thus housing and car loans would be dearer now and the market has predictably sharply and negatively reacted to this development. Does it signal a slow rollback of the measures taken by Government to revive the recession-hit economy? What are your views?
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