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 per cent and 3.25 per cent, 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.
The apex bank has pegged the economic growth rate for the current fiscal at 6 per cent and average inflation at 3 per cent for the medium term.
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