The Reserve Bank of India on Tuesday cut repo rates by 0.50 per cent to 8 per cent. Repo is the rate at which banks borrow money from RBI. This is a reference rate used by banks to lend to their customers like companies and individuals.
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This is the central bank’s first interest rate cut since January 2009.
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The cash reserve ratio, the percentage of deposits kept by banks with RBI, was left unchanged at 4.75 per cent.
Read the whole statement here