The Reserve Bank of India (RBI) today cut its repo rate by 50 basis points, citing decreasing growth and inflation as the reason.
The governor of the RBI, Duvvuri Subbarao, presented the Monetary Policy Statement 2012-13 in which he revealed the rate would drop from 8.5% to 8%.
The decision to ease monetary policy was made taking into account two main factors, Subbarao said. First was that growth "decelerated significantly" to 6.1% in the third quarter of last year. "Based on current assessment,