RBI cuts repo, reverse repo rates

On a review of the current global and domestic macroeconomic situation, the Reserve Bank of India (RBI) has decided to cut the Repo Rate and Reverse Repo Rate.

RBI has reduced the repo rate under the liquidity adjustment facility (LAF) by 50 basis points from 5.5 per cent to 5.0 per cent with immediate effect.

It has reduced the reverse repo rate under the LAF by 50 basis points from 4.0 per cent to 3.5 per cent with immediate effect.

It is expected that the reduction in the policy interest rates will further encourage banks to provide credit for productive purposes at viable interest rates. The Reserve Bank on its part would continue to maintain ample liquidity in the system.

Source : Equity Bulls

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