Reserve Bank of India (RBI) on Tuesday
cut repo rate by 25 basis points in its mid-quarterly review.
Here are key takeaways:
>> RBI cuts its key policy rate by 0.25 per cent to 7.5 per cent
>> Leaves the cash reserve ratio (CRR) unchanged at 4 per cent.
>> Growth has decelerated significantly: RBI
>> Competitive interest rate necessary but not sufficient to revive investments: RBI
>> High CAD and inflationary expectations limit possibility of further easing of rates: RBI.
>> Budget committed to fiscal consolidation: RBI
>> Deceleration service sector growth worrying: RBI
>> Demand-supply gaps to keep pressure on inflation: RBI
>> Headline inflation expected to remain at current levels through FY14: RBI
>> Govt has to remain committed to fiscal consolidation: RBI
>> Easing supply bottlenecks, improving project implementation key to growth: RBI
>> Risk on CAD, inflation remain significant: RBI
>> Govt has a critical role to play in pushing growth: RBI
>> Limited headroom for further easing despite pro growth stance: RBI
Special 
