RBI cuts short-term lending, borrowing rates by 25 bps

Mumbai, Apr 21 (PTI) The Reserve Bank of India (RBI)
Tuesday reduced the short-term lending (repo) and borrowing
(reverse repo) rates by 25 basis points, a move that will
signal further cuts in lending rates by banks for retail and
industrial borrowers.

Following the decision of the RBI, the repo rate and
reverse repo rates will now stand at 4.75 per cent and 3.25
per cent, respectively.

The cash reserve ratio (CRR), the percentage of deposits
that banks keep with the RBI, has been kept unchanged at 5 per
cent, in the annual monetary policy unveiled by the RBI
here.

The apex bank has pegged the economic growth rate for the
current fiscal at 6 per cent and average inflation at 3 per
cent for the medium term. PTI