HIGHLIGHTS - RBI cuts rates to support growth
MUMBAI (Reuters) - Following are key points from the Reserve Bank of India's (RBI) annual policy statement released on Tuesday.
The Reserve Bank of India cut its key short-term rates by an expected 25 basis points each to shore up faltering growth in the face of the global economic slowdown.
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INTEREST RATES
REPO RATE: Cut by 25 bps to 4.75 percent. This is the rate at which the central bank adds funds to the money market.
REVERSE REPO RATE: Cut by 25 bps to 3.25 percent. This is the rate at which the central bank absorbs funds from the market. It impacts government bond yields and short-term bank deposits.
BANK RATE: Unchanged at 6.00 percent. Banks use this rate to price their long-term loans to individuals and companies. Continued...
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