RBI cuts lending rate by 0.25% to 7.5% on softening inflation

New Delhi, Mar 4 (KMW): Within days of presentation of the Budget, the Reserve Bank today surprised markets by reducing the benchmark interest rate by 0.25 per cent to 7.5 per cent on the back of softening inflation and the government’s commitment to continue the fiscal consolidation programme.

The short term lending rate (repo) will be reduced from 7.75 per cent to 7.