RBI lowers repo rate by 25 bps to 6%

  • A RBI Governer Shaktikantadas

    The central bank had reduced the repo rate by 25 basis points in February, after a gap of 18 months

    This interest rate cut would provide relief to borrowers in the election season

    In its first bi-monthly monetary policy meet of this financial year (FY19-20), the 
    Reserve Bank of India
     (RBI) on Thursday decided to cut repo rate by 25 basis points (bps) or 0.25 per cent to 6 per cent. The RBI has maintained the policy stance at "neutral".

    The RBI's six-member rate setting panel headed by RBI governor Shaktikanta Das on Tuesday started its 3-day monetary policy meet amid expectations of a cut rate to boost economic activities. This is also the first back-to-back rate cut since the Monetary Policy Comittee (MPC) was formed in late 2016.

    Das has already held meetings with stakeholders including industry bodies, depositors association, MSME representatives and bankers. Since taking over at the central bank in December last year, the RBI governor has taken a series of steps to help support economic growth and spur lending.

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