It is being reported that the apex bank of the country has cut the repo rate by 0.25% before the coming monetary policy on February 3, 2015. The rate will cut down to 7.75%. Prior to this the repo rate was 8%, and the new rate is applicable from yesterday itself.
The cash reserve ratio (CRR) was kept unchanged at 4.0 per cent. RBI reported that inflation is likely to be below 6 per cent by January 2016. The marginal standing facility (MSF) rate and the bank rate stand at 8.75 per cent with immediate effect. The RBI is making all the possible to live up to its expectation and improve the economical condition of the country.