Reserve Bank of India Holds Rate at 8.50%, Cuts CRR 50bps

The Reserve Bank of India [RBI] held its repo rate at 8.50% and reverse repo rate at 7.50%, but cut the cash reserve ratio [CRR] by 50 basis points to 5.50% from 6.00%. The RBI said: "In reducing the CRR, the Reserve Bank has attempted to address the structural pressures on liquidity in a way that is not inconsistent with the prevailing monetary stance. In the two previous guidances, it was...