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RBI springs surprise with 50 bps rate cut, Rs 2.5 lakh crore liquidity boost

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The Reserve Bank of India surprised markets by cutting its benchmark rate. It also released Rupees 2.5 lakh crore liquidity. This was done by reducing the cash reserve ratio. Governor Sanjay Malhotra said this supports growth. Inflation projections were also revised downward. The monetary policy committee voted 5:1 for the rate cut.
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