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RBI cuts repo rate by 25 bps to 6.5%

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Offline raj

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RBI cuts repo rate by 25 bps to 6.5%
« on: April 05, 2016, 07:27:21 PM »

RBI cuts repo rate by 25 bps to 6.5% in the first bi-monthly monetary policy review for the 2016-17 fiscal, which began on April 1

RBI increased the reverse repo, or the rate at which banks park excess funds with the central bank, to 6%, narrowing the policy corridor between the repo and reverse repo by 50 bps, bringing the marginal standing facility (MSF) rate to 7.0%.

 The Bank Rate which is aligned to the MSF rate also stands adjusted to 7.0%. But the CRR has been kept unchanged at 4.0 per cent of net demand and time liabilities (NDTL).

RBI also retained its GDP growth forecast at 7.6 per cent, on the assumption of a normal monsoon

RBI reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 95% of the requirement to 90% with effect from the fortnight beginning April 16, 2016.

This Repo rate cut is lowest in Six years.

Read Also : SBI Reduces MCLR Rate


 

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