India’s central bank cut its repo rate by 25 basis points to 6.50 percent at a policy review on Tuesday, making a widely expected first reduction since September to bring the rate to its lowest in more than five years.
But in a surprise move, the Reserve Bank of India also raised the reverse repo — or the rate lenders charge to the central bank — by 25 basis points to 6.0 percent, while taking measures to ensure more availability of cash in the banking system.
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