The Reserve Bank of India (RBI) today reduced policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.75% to 7.5% with immediate effect. The central bank kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL).

Chanda Kochhar, managing director and chief executive officer, ICICI Bank said, "'The repo rate cut is a welcome step that demonstrates RBI's comfort with the inflation outlook and its responsiveness to emerging indicators. It also reflects the number of institutional reforms and policy measures outlined in the Union Budget, which lay the foundation for sustainable growth. The rate action today should help move the economy forward on a positive growth path."

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