RBI Cuts Repo Rate, CRR by 25 Basis Points
January 29, 2013 5:00 PM EST
The RBI reduced repo rate by a widely expected 25 basis points on Tuesday, taking comfort from cooling inflation as it made the first cut in nine months to support an economy headed for its slowest growth in a decade.
The Reserve Bank of India cut its key repo rate to 7.75 percent, as forecast by a Reuters poll.
The RBI unexpectedly also reduced the cash reserve ratio (CRR), the share of deposits banks must keep with the central bank by 25 bps to 4 percent, which will infuse an additional 180 billion rupees into the banking system.
The central bank said there was increasing likelihood of inflation remaining rangebound around current levels heading into 2013/14 fiscal year starting April.
"This provides space, albeit limited, for monetary policy to give greater emphasis to growth risks," the central bank said in its quarterly monetary policy review.
Most Popular Slideshows
Join the Conversation
- Russia's New Tactical Nuclear Weapons Program Growing Confident Against the US: Talks of World War III
- Apple and Google Engage in Thermonuclear War, New Google Translate Chat App in the Works
- Kobani ISIS Fighter Sends Out Desperate Message For Prayers And Support: Euphoria Turns Into Desperation As Kurds Advance
- Chris Algieri’s Battered Face Trends On Social Media
- Home Depot Early Black Friday 2014 Sale Up To Nov. 29, 2014 Includes Special Buys On Appliances Such As Samsung Refrigerators, Whirlpool Electric Ranges And Hoover Vacuum Cleaners
- Highest Paid NBA Players 2014: NBA Stars Who Earn More Than LeBron James
- Walmart Offers the Best 2014 Black Friday Deals on iPhone 6, iPad Ai2 & Other Gadgets – Reports