The Reserve Bank of India has announced monetary policy review. The policy rates have been kept unchanged. To some relief Cash Reserve Ratio (CRR) has been reduced by 50 basis points or 0.50%. The CRR now stands at 5.50%.

The apex bank expects that the reduction in CRR would assuage the liquidity in the market. The move is also expected to support the growth rate as well as to rein the medium-term inflation.

"The reduction (in CRR) can also be viewed as a reinforcement of the guidance that future rate actions will be towards lowering them," said RBI.

The repo rate and reverse repo rate will stay fixed at 8.50% and 7.50% respectively for the time being.