RBI cuts repo rate by 25 bps to 7.5%; Sensex, Nifty hit historic highs | Business Line

Tree days after the Union Budget announcement, the Reserve Bank of India on Wednesday cut the repo rate from 7.75 per cent to 7.50 per cent.

Repo rate is the interest rate at which RBI provides short-term liquidity to banks.

The benchmark BSE Sensex breached the 30,000-mark and the NSE Nifty zoomed to hit a lifetime high of 9,119.20 in opening trade today on buying in rate-sensitive stocks after RBI's surprise move.

Given low capacity utilisation and still-weak indicators of production and credit offtake, it is appropriate for the Reserve Bank to be pre-emptive in its policy action to utilise available space for monetary accommodation, the RBI said.