New Delhi, Apr 21: Reserve Bank of India (RBI) as part of its annual policy statement for the financial year 2009-10 slashed the repo and reserve repo rates by 25 basis points (0.25 pc) each.
The repo rate is the rate at which RBI lends private and public sector banks while reverse repo is the opposite. After cut, repo rate now stands at 4.75 pc while the reserve repo stand at 3.25 pc. However there is no change in the Cash Reserve Ratio (CRR).
The Gross Domestic Product (GDP) forecast for the FY10 has been pegged at about 6 pc, according to the policy. The Apex Bank last cut interest rates in early Mar.
RBI said in a statement released, "We will also continuously monitor the global and domestic conditions and respond swiftly and effectively through policy adjustments as warranted so as to minimise the impact of adverse developments and reinforce the impact of positive developments."