Just In: RBI reduces repo rate by 25 basis points from 6.75 per cent to 6.5 per cent

Much on expected line, RBI reduced repo rate by 25 basis points from 6.75 per cent to 6.5 per cent. In other important development the central bank has narrowed the policy rate corridor from +/-100 basis points (bps) to +/- 50 bps by reducing the MSF rate by 75 basis points and increasing the reverse repo rate by 25 basis points.

RBI also reduced the minimum daily maintenance of the cash reserve ratio (CRR) from 95 per cent of the requirement to 90 per cent with effect from the fortnight beginning April 16, 2016, while keeping the CRR unchanged at 4.0 per cent of net demand and time liabilities (NDTL).