Mumbai, Apr 5 (KNN) The Reserve Bank of India (RBI) has slashed the repo rate by 25 basis points to 6.5 per cent in its First Bi-monthly Monetary Policy Statement, 2016-17.

Meanwhile, the Cash Reserve Ratio (CRR) has been left unchanged. However, the central bank has tweaked several policies with respect to liquidity.

It has reduced the Marginal Standing Facility (MSF) rate by 75 basis points from 7.75 per cent to 7 per cent.

The RBI has also raised the reverse repo rate from 5.75 per cent to 6 per cent. Now the difference between the repo and reverse repo rates has come down from 1 per cent to 0.5 per cent. (KNN Bureau)