The Reserve Bank of India (RBI) in its quarterly monetary policy review on Tuesday cut the Cash Reserve Ratio (CRR) by 25 basis points (bps).

The Reserve Bank of India (RBI) in its quarterly monetary policy review on Tuesday cut the Cash Reserve Ratio (CRR) by 25 basis points (bps). This is the first cut effected since April this year. CRR - the amount of depositsthat banks must keep with the central bank - now stands at 4.25 per cent. The move is expected to inject Rs17,500 crore into the banking system. The central bank has, however, kept the repo rate unchanged at 8 per cent. Though inflation remains a near-time concern, RBI hinted at easing monetary policy further in the January-March quarter. "As inflation eases further, there will be an opportunity for monetary policy to act in conjunction with fiscal and other measures to mitigate the growth risks and take theeconomy to a sustained higher growth trajectory," RBI Governor Duvvuri Subbarao said. Headline wholesale price index inflation rose to 7.8 per cent in September . The central bank said it expects inflation to rise before easingin the final quarter of the financial year, which ends in March.