Reserve Bank of India cuts repo rate by 25 basis points
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New Delhi : Citing an improved combined fiscal deficit Reserve Bank of India governor Raghuram Rajan brought down his key policy rate by 25 basis points.
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The improvement is noted after Centre allowed more funds to the states with their brand new policies.
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"It has been decided to reduce the policy repo rate under the liquidity adjustment facility by 25 basis points from 7.75% to 7.5% with immediate effect," Raghuram Rajan said in a statement.
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This is the first time that the Reserve Bank of India has announced a monetary policy action ahead of markets opening.