RBI cut Repo Rate by 0.25% in sixth Bi-Monthly Monetary Policy - TopicsExpress

RBI cut Repo Rate by 0.25% in sixth Bi-Monthly Monetary Policy ********************************************************************************** The Reserve Bank of India (RBI) on 15 January 2015 announced sixth Bi-Monthly Monetary Policy Statement. RBI in its bi-monthly monetary policy statement cut its main lending rate (Repo Rate) by 0.25 per cent with immediate effect. This is the first rate cut from the RBI since 2013. With this, repo rate will now prevail at 7.75 percent from previous 8 percent. The RBI rate cut comes just two weeks before its scheduled policy review on 3 February 2015. Based on the assessment of the current and evolving macroeconomic situation, the following changes has been taken • Repo Rate: Reduced Repo rate under Liquidity Adjustment Facility (LAF) by 25 basis points from 8.0 per cent to 7.75 per cent with immediate effect • Reverse Repo Rate under the LAF: Stands adjusted to 6.75 per cent • Cash Reserve Ratio (CRR): Kept unchanged at 4.0 percent of net demand and time liabilities (NDTL) • Marginal standing facility (MSF) rate: 8.75 percent • Bank Rate: 8.75 percent