MUMBAI, Sept 17: The Reserve Bank of India (RBI) today cut Cash Reserve Ration (CRR) by 25 basis points to 4.50 per cent but kept Repo and Reverse Repo Rates unchanged at 8 and 7 per cent respectively.
CRR cut will infuse Rs 17,000 crore in liquidity. The rates will be effective from September 22.
Dr D Subbarao, RBI Governor, while announcing the Mid Quarter Review of the Monetary policy, said the policy from hereon will depend on inflation. The diesel price hike will put pressure on headline inflation.
The marginal standing facility (MSF) rate and the Bank Rate remained unchanged at 9.0 per cent, Dr Subbarao said.
Headline WPI inflation (y-o-y) has remained sticky at around 7.5 per cent throughout the current financial year so far.
At the disaggregated level, within primary food articles, the easing of vegetable prices in July-August was to a large extent offset by the surge in prices of cereals and pulses, Dr Subbarao said in a statement. (UNI)
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