On December 6, the Reserve Bank of India cut the cash reserve ratio (CRR) by 50 bps, injecting Rs 1.16 lakh crore into the banking system, while maintaining the repo rate at 6.5% for the 11th consecutive meeting. The Monetary Policy Committee aims to achieve a medium-term consumer price index inflation target of 4%, amidst rising inflation and subdued growth, with the latest CPI at 6.21%. Experts view the CRR reduction positively for bank liquidity, though expectations for further repo rate cuts remain cautious.
