RBI cuts repo rate 25 BPS, Sensex, Nifty achieve record highs
New Delhi, March 04 (ANI): The Reserve Bank of India (RBI) cut the Repo Rate by 25 basis points to 7.5 percent, signaling that it was convinced by the fiscal consolidation measures announced in the budget proposals for 2015-16. The RBI has kept the cash reserve ratio (CRR) unchanged at four percent. "Disinflation is evolving along the path set out by the Reserve Bank in January 2014 and, in fact, at a faster pace than earlier envisaged," the RBI said in its statement for the reasons behind the rate cut. This is the second out of turn 25 basis point-cut after the one in January. The RBI move to cut the Repo Rate by 25 BPS had its immediate impact with the Bombay Stock Exchange's Sensex opening on a record high 30000 points and the National Index or Nifty opening at 9100 points in early morning trade.
