RBI Policy Repo Rate cuts by 25 bps to 5.75%
RBI Policy Repo Rate cuts by 25 bps to 5.75%. This is the third straight interest-rate cut under RBI Governor Shaktikanta Das, who also heads the Monetary Policy Committee (MPC).
The Monetary Policy Committee (MPC) of the Reserve Bank of India on Thursday effected a 25 basis points cut in repo rate in its second bimonthly policy review of this financial year.
The cut, the repo rate now stands at 5.75 per cent. The MPC also changed policy stance to ‘accomodative’ from ‘neutral’.
Repo is the rate at which the central bank lends to commercial lenders, and the cut signalled a drop in cost of funds for corporates and individual borrowers though domestic banks h.
The Reserve Bank of India (RBI) Monetary Police Committee Thursday unanimously cut repo rate the rate at which it lends to banks by 25 basis points from 6 per cent to 5.75 per cent.
The bank also changed the monetary policy stance from neutral to accommodative. The reverse repo rate and bank rate have been adjusted at 5.50 and 6.0 per cent respectively.
The bank also lowered the Gross Domestic Product (GDP) growth forecast for 2019-20 to 7 per cent from 7.2 per cent in earlier projection.
On the other hand, inflation projection has been raised to 3-3.1 per cent for April-September and 3.4-3.7 per cent or the second half of the year.
RBI has decided to do away with charges levied on RTGS and NEFT transactions, banks will be required to pass this benefit to their customers.
This is the third straight interest-rate cut under RBI Governor Shaktikanta Das, who also heads the Monetary Policy Committee (MPC).