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India : RBI cuts the Repo rate
Publish Date : 18-Apr-2012
The Reserve Bank of India (RBI) has cut the Repo rate by 50 basis points, thus making the first policy rate cut in 3 years.
RBI governor D Subbarao has said that the Repo Rate has been cut by 50 basis points from 8.5% to 8%.
He said this while announcing the Monetary Policy for the year 2012-2013.
Repo rate is the rate at which banks secure loans from the RBI. The cash reserve ratio continues at 4.75%.
The apex bank expects the growth rate for the present fiscal to reach 7.3%.
It cut bank rate by 0.5 percent to 9 percent.
While declaring the credit policy, Subbarao stated that the liquidity conditions were moving towards RBI\'s comfort zone and added that there is a need to hike fuel prices for macro economic stability.
After increasing policy rates for 13 consecutive times between March 2010 and October 2011, RBI has taken a pause to support India’s falling growth momentum.
