<h1>RBI Cuts CRR by 25 Basis Points, Keeps Repo Rate Steady at 8%; Government Reforms Aim to Boost Growth.</h1> The mid-quarter monetary policy review in September 2012 announced a reduction in the cash reserve ratio (CRR) for scheduled banks by 25 basis points, injecting approximately Rs. 170 billion into the banking system. The policy repo rate remained unchanged at 8.0%. Despite global economic challenges and domestic inflationary pressures, recent government reforms aimed at fiscal consolidation and increased foreign direct investment are expected to improve economic growth. Inflation remains a key concern, with headline inflation around 7.5% and core inflation pressures persisting. The external sector faces risks from global economic conditions, necessitating careful management of the current account deficit.