Reserve Bank of India (RBI) cuts repo rate by 0.25% to 7.25; leaves Cash Reserve Ratio (CRR) unchanged.
The Reserve Bank of India on May 3, 2013 cut its key repo rate by 25 basis points to 7.25 per cent.
In its Macroeconomic and Monetary Developments report, released on the eve of the policy, RBI had sounded quite hawkish and reiterated that there was limited space for monetary policy action in the coming days.
Decoded, that meant no rate cuts for now. Instead, RBI was probably keeping the markets guessing by saying that a “policy recalibration’’ could happen in either direction — which meant even a hike — if local and overseas conditions warranted it.