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The Reserve Bank of India in its mid-quarter monetary policy review hiked the repo rate by 25 basis points to 7.5%. Economists had widely expected the RBI to leave the repo rate unchanged.
The central bank, however, reduced the Marginal Standing Facility (MSF) rate by 75 basis points to 9.5%.
The reverse repo rate stands adjusted at 6.5%.
RBI also reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 99% of the requirement to 95% effective from the fortnight beginning September 21, while keeping the CRR unchanged at 4%.
Smart Investor Team spoke with leading economists and market analysts on their interpretation of the statements and the road ahead.
THE PANEL
Shubhada Rao, chief economist, YES Bank Click here to listen
Deepak Jasani, head of retail research, HDFC Securities Click here to listen
Vaibhav Sanghavi, director equities, Ambit Holdings Click here to listen
Anil Rego, CEO and Founder, Right Horizons - a wealth management firm Click here to listen
Lakshmi Iyer, senior vice president and head of fixed income, Kotak Mutual Fund Click here to listen
