RBI reduces repo rate by 25 basis points

FXStreet (Mumbai) - Reserve Bank of India (RBI), in its bi-monthly policy statement on Tuesday, announced the reduction in the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5% to 7.25% with immediate effect.

The bank kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0% of net demand and time liabilities. Consequently, the reverse repo rate under the LAF stands adjusted to 6.25%, and the marginal standing facility (MSF) rate and the Bank Rate to 8.25%.