The Reserve Bank of India on Tuesday cut cash reserve ratio by 0.25 per cent to 4.25 per cent, and left the repo rate unchanged at 8 per cent.

Reserve Bank has decided to inject Rs 17,500 crore of liquidity into the banking system by CRR cut. RBI lowers GDP growth forecast for 2012-13 to 5.8 % from 6.5 %. RBI also ups year-end inflation estimate to 7.5 per cent from 7 per cent. RBI has kept key lending and borrowing rates unchanged.

RBI Governor D Subbarao said in New Delhi today that Monetary policy actions will support growth, moderate inflation.

The central bank said on Monday it would take steps to support growth in the half-yearly review of monetary policy today despite high inflation.