The Reserve Bank of India on Saturday announced a cut in both repo and reverse repo rates by 100 basis points.
The reverse repo will be down to 5.0% from 6.0% now effective December 8. The repo rate will be down to 6.5% from 7.5% now effective December 8.
The cash reserve ratio (CRR) has been left unchanged at 5.5%. The statutory liquidity ratio (SLR) too is unchanged at 24%.
The primary liquidity made available to the system through these measures is worth over Rs 3,00,000 crore (Rs 3,000 billion), RBI Governor D Subbarao said in Mumbai.
Besides, the apex bank also pumped in Rs 11,000 crore (Rs 110 billion) in Small Industries Development Bank of India and National Housing Bank to give a fillip to realty and small and medium sectors.
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