RBI reduces key lending rates

Mumbai: Subdued inflation and demand prompted India’s central bank, the RBI, on Wednesday to reduce its key lending rate by 25 basis points (bps).

According to the Reserve Bank of India’s third bi-monthly monetary policy review of 2017-18, the repurchase rate, or the short-term lending rate for commercial banks on loans taken from it, stands lowered to 6 per cent from 6.25 per cent.

Subsequently, the reverse repurchase rate, or the short-term borrowing rate, has been adjusted to 5.75 per cent from 6 per cent.

(IANS)