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RBI to slowly taper-off special FX window for oil marketing cos

MUMBAI (Reuters) - The RBI said on Friday it would slowly taper-off the special foreign exchange swap window instituted for oil marketing companies when economic conditions improve.

Reserve Bank of India (RBI) Governor Raghuram Rajan, speaking to reporters after the RBI's mid-quarter policy review, said the intent of the latest policy decision was to emphasise that the cost of short-term funding was very high.

The RBI unexpectedly raised its policy repo rate by 25 basis points (bps) to 7.50 percent, while rolling back some of the steps that had been imposed to support the slumping rupee currency. It reduced the marginal standing facility (MSF) rate by 75 bps to 9.50 percent.

(Reporting by Mumbai Treasury Desk; Editing by Kim Coghill)