Reserve Bank of India cuts repo rates

The Reserve Bank of India (RBI) on April 17, 2012 (Tuesday) cut the policy rates by 0.50 percentage points, signalling banks to cut the lending rates. The decision is likely to help borrowers breathe easy.

The short-term repo rate has been cut from 8.5 per cent to 8 per cent. This reduction in rates after they were increased 13 times between March 2010 and October 2011 surprised the market, which was expecting a cut of 0.25 percentage points.

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