RBI cuts repo rate by 50 bps to 8%
The Reserve Bank of India (RBI) cut interest rates today for the first time in three years by an unexpectedly sharp 50 basis points to give a boost to flagging economic growth but warned that there is limited scope for further rate cuts.
The RBI cut its policy repo rate to 8%, compared with market and expert expectations for a 25 basis point cut.
The RBI raised rates 13 times between March 2010 and October 2011 as it struggled to contain price pressures.
On Tuesday, the RBI left unchanged the cash reserve ratio (CRR), the share of deposits that banks must hold with the central bank, at 4.75%, in line with expectations, after cutting it by 125 basis points since January to ease tight market liquidity.
Source : http://www.business-standard.com/india/news/rbi-cuts-repo-rate-by-50-bps-to-8/163098/on