RBI cuts repo rates

The Reserve Bank today reduced the short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points, a move that will signal further cuts in lending rates by banks for retail and industrial borrowers. Following the decision of the RBI, the repo rate and reverse repo rates will now stand at 4.75% and 3.25%, respectively. The Cash Reserve Ratio (CRR), the percentage of deposits that banks keep with the RBI, has been kept unchanged at 5 per cent, in the annual monetary policy unveiled by the RBI here.