The decision to reduce repo rate comes a fortnight ahead of the scheduled date of monetary policy announcement on February 3. Following are the highlights of the RBI decision on monetary policy and subsequent developments:
Key policy rate (repo) cut by 0.25 per cent to 7.75 per cent. |
Reverse repo to cut by 0.25 pc; CRR still at 4 per cent. |
First cut in interest rate since May 2013. |
EMIs for auto and home loan may come down. United Bank of India announces cut in lending rate; other banks likely to follow. |
BSE Sensex jumps over 800 points in intra-day trade. |
Finance Minister Arun Jaitley terms it positive for economy, will leave more money in hands of people. Corporate world hails the move. |
Inflationary pressures easing since July 2014, says RBI. Inflation likely to be below 6 per cent by January 2016. |
Crude prices expected to remain low over the year. |
RBI to announce monetary policy review on February 3. |
