RBI makes surprise early rate cut, more expected The Reserve - TopicsExpress



          

RBI makes surprise early rate cut, more expected The Reserve Bank of India (RBI) surprised markets with a 25 basis point cut in interest rates on Thursday and signalled it could do more, amid signs of slowing inflation and what it said was a government commitment to contain the fiscal deficit. Acting ahead of a scheduled RBI policy meeting on Feb. 3 and the governments annual budget statement late next month, the central bank lowered the repo rate - its key lending rate - to 7.75 percent from 8.0 percent, where it had been for the past year. As a result the reverse repo rate, the rate at which the central bank drains excess liquidity from the banking system, also moved down by 25 basis points to 6.75 percent.
Posted on: Thu, 15 Jan 2015 07:21:42 +0000

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