RBI cuts Repo Rate by 25 bps to 7.25%

In it's second bi-monthly policy statement. RBI slashed Repo rate and Reverse repo rate by 25 basis points. 

Key Policy Rates

S. No	Rates / Reserve Ratios	%	Effective from
1	Bank Rate	8.25 %	02-06-2015
2	Repo Rate	7.25 %	02-06-2015
3	Reverse Repo Rate	6.25%	02-06-2015
4	Cash Reserve Ratio (CRR)	4.00%	09-02-2015
5	Statutory Liquidity Ratio (SLR)	21.50%	03-02-2015
6	Marginal Standing Facility (MSF)	8.25 %	02-06-2015

RBI Governor Rajan said 

Banks have started passing through some of the past rate cuts into their lending rates, headline inflation has evolved along the projected path, the impact of unseasonal rains has been moderate so far, administered price increases remain muted, and the timing of normalisation of US monetary policy seems to have been pushed back. With low domestic capacity utilization, still mixed indicators of recovery, and subdued investment and credit growth, there is a case for a cut in the policy rate today."

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