RBI cuts repo rates by 25 basis points

MUMBAI: The Reserve Bank of India cut its repo interest rate by 25 basis points to 7.75 per cent in a surprise move on Thursday, making its first reduction in a year as inflation showed signs of slowing and the government was making efforts to contain the fiscal deficit.

The RBI added it could cut interest rates further should inflation continue to ease, while it would also monitor the government’s progress on fiscal consolidation.