Commodity Online MUMBAI: The Reserve Bank of India has reduced the repo rate under the Liquidity Adjustment Facility (LAF) from 9 percent to 8 percent in view of the global liquidity constraint, RBI said today.
This is the first time since 2004 that RBI is reducing repo rate even as it along with the recent 2.5 % cut in cash reserve ratio could lead to inflationary pressures in the economy.
Recently many international agencies and analysts had revised downwards the estimates for India’s GDP growth at 7.5-7.9 % as against 9.3 percent growth witnessed last year.
