RBI unexpectedly slashes the key rate by 50bps to 6.75%

FXStreet (Mumbai) - In a surprising move, the Reserve Bank of India (RBI) cut the benchmark repo rate by 50 basis points to 6.75% at its latest Monetary Policy Review meeting on Tuesday. Markets had predicted a 25bps rate cut.

The central bank left the cash reserve ratio (CRR) unchanged at 4%. While the reverse repo rate under the LAF was slashed to 5.75% and the marginal standing facility (MSF) rate and the Bank Rate to 7.75%.