Repo rate, CRR see deep cuts

IT IS EXPECTED to help banks during the festival period when the demand for loans skyrockets.

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It will also help reduce the cost of funds for banks and protect their profitability, thus enabling them to offer more competitive interest rates to consumers and businesses.

The markets reacted positively to the decision, with the Bank Nifty touching its all-time high at 56,695 before ending the day at 56,578.40, up 1.47%. While the Nifty reclaimed 25,000 points, the BSE Sensex ended 1% higher to close at 82,189. The Indian rupee appreciated 16 paise to end at ₹85.63 against the dollar, while the 10-year G-Sec yield, after slipping to 6.13%, ended higher on profit booking at 6.28% on Friday.