RBI slashes repo rate by 25 bps, no change in CRR
The Reserve Bank of India (RBI) has cut down repo rate by 25 basis points from 7.75% to 7.5% with immediate effect.
As a result,
- The reverse repo rate stands adjusted to 6.5%.
- The marginal standing facility (MSF) rate and the Bank Rate adjusted to 8.5% .
- The Cash Reserve Ratio (CRR) has been left unchanged at 4%.
As per the central bank, high Current Account Deficit (CAD) and inflationary pressure limit possibility of further relaxing of rates.