ANSWER: Third
Explanation:
But announcing its bi-monthly monetary policy, the RBI left all other policy tools, like the Cash Reserve Ratio and the Statutory Liquidity Ratio unchanged. Following RBI’s instructions to pass on the sequence of rate cuts into lending rates, the State Bank of India has reduced its base rate by 15 basis points to 9.70 per cent from 9.85 per cent effective 8th June. This comes after the Reserve Bank announced a repo rate cut of 25 bps earlier today. While the Reserve Bank has cut its lending rates by 75 basis points in three installments, the SBI has done so by 30 bps in two tranches.
