RESERVE Bank cuts repo rate to 10,5%
THE RESERVE Bank cut its key repo rate by 100 basis points to 10,5% today, as expected, with inflation slowing and worries about economic growth mounting.
In an aggressive monetary policy announcement, the RBI hiked the repo rate the rate at which the RBI lends money to banks, by 0.25 % from 5.75% to 6 % and the reverse repo rate, the rate at which RBI borrows money from bank by 0.50 % from 4.50% to 5 %.