REUTERS -The RBI left interest rates unchanged but cut the cash reserve ratio for banks, saying the primary focus of monetary policy remains fighting inflation, days after the government unveiled a spree of reforms to boost growth and improve its fiscal position.
The Reserve Bank of India held the policy repo rate at 8 percent, and subsequently, the reverse repo rate was left unchanged at 7.00 percent.
The RBI cut the cash reserve ratio, the share of deposits banks must keep with the central bank, by 25 basis points to 4.5 percent.
It also left the minimum requirement for banks’ government bond holdings at 23 percent of deposits.
(To read the main story on RBI's rate decision, click reut.rs/Ozh4KF)
(Also read experts' view on RBI's rate decision, click reut.rs/Ozi80W)
Following is a timeline of changes to the repo rate since June 2000.
* RATE (percent) EFFECTIVE DATE (day-month-year)
* Note: Prior to October 29, 2004, the repo rate was known as the reverse repo rate. For further details, please see central bank’s website:www.rbi.org.in.
Compiled by Mumbai Treasury Desk