RBI holds repo rate, cuts CRR by 25 bps

The Reserve Bank of India (RBI) today reviewed its monetary policy in which it has cut cash reserve ratio (CRR) by 25 basis points to 4.50 per cent to increase liquidity flow into the economy. Though, it has kept interest rates unchanged. The decision will infuse Rs 17,000 crore into the banking system. The repo rate was kept status quo at 8 percent. Inflation risks still remain high and the bank will monitor the number to ensure adequate credit growth.