RBI cuts repo rate by 25 basis point
Reserve Bank of India (RBI) has cut down repo rate by 25 basis points to 7.75 percent from 8 percent, with immediate effect.
It was announced ahead of the scheduled date of monetary policy announcement on 3rd February 2015 as part of RBI’s 6th bi-monthly monetary policy statement.
RBI’s 6th bi-monthly monetary policy statement says that
- Repo rate: RBI has reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0 per cent to 7.75 per cent.
- Cash reserve ratio (CRR): RBI has unchanged CRR and kept it at 4.0 per cent of net demand and time liabilities (NDTL).
- Reverse repo rate: RBI has adjusted reverse repo rate under the LAF to 6.75 per cent.
- While, RBI has adjusted Marginal standing facility (MSF) rate and the Bank Rate to 8.75 per cent with immediate effect.