Reserve Bank of India slashed Repo Rate to 7.75 Percent and CRR to 4 Percent

The Reserve Bank of India lowered its key policy rate as expected for the first time in nine months to support an economy set for its slowest growth in a decade, but signalled there was less room for aggressive cuts in future due to concerns over inflation.

Following are highlights from the monetary policy statement:

POLICY MEASURES

* Cuts repo rate by 25 basis points to 7.75 percent.

* Reverse repo adjusted to 6.75 percent.

* Cash reserve ratio cut 25 basis points to 4.00 percent effective fortnight beginning February 9.

* Marginal Standing Facility rate adjusted to 8.75 percent.

* Bank rate adjusted to 8.75 percent.