RBI lowered the minimum daily cash reserve ratio (CRR) requirement to 90 per cent from 95 per cent.
It raised the reverse repo rate by 25 basis points. This is the rate of interest that banks earn when they park money with the banking regulator. The RBI move was aimed at discouraging banks from sitting on cash and encourage more lending.
reduced the marginal standing facility (MSF) rate by 75 basis points. Essentially, this has reduced the cost of funds for banks on the RBI liquidity window.
We must take the trade and if stops are too wide, keep 20 points stop to protect ourselves if the market turns against us.On such days as RBI policy we will always have large candles.