Shedding its 9-month long hawkish
monetary policy stance, the Reserve
Bank today slashed its key interest
rates by 0.25 per cent and released Rs
18,000 crore additional liquidity into
the system to perk up growth through
reduced cost of borrowing. RBI
Governor D Subbarao in the third
quarter monetary policy review
surprised the market by cutting short-
term lending rate called repo by 0.25
per cent to 7.75 per cent and Cash
Reserve Ratio (CRR) by similar margin
to 4 per cent, releasing Rs 18,000
crore primary liquidity into the system
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