NEW DELHI, Mar4 : In a surprise move, Reserve Bank of India on Wednesday slashed repo rate by 25 bps to 7.5 per cent from 7.75 per cent earlier. Consequently, the reverse repo rate under the LAF stands adjusted to 6.5 per cent.
The central bank kept the cash reserve ratio ( CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL).
Going forward, the RBI will seek to bring the inflation rate to the mid-point of the band of around 4 per cent provided for in the agreement, i.e., to 4 per cent by the end of a two year period starting fiscal year 2016-17, the central bank said in a statement.
The guidance on policy action given in the fifth-bi-monthly monetary policy statement of December 2014 is largely unchanged.
RBI added that further monetary actions will be conditioned by incoming data, especially on the easing of supply constraints, improved availability of key inputs such as power, land, minerals and infrastructure, continuing progress on high-quality fiscal consolidation.
RBI added that further monetary actions will be conditioned by incoming data, especially on the easing of supply constraints, improved availability of key inputs such as power, land, minerals and infrastructure, continuing progress on high-quality fiscal consolidation.
