RBI cuts Repo Rate by 25 basis points to 6% at its third bimonthly policy review.The Monetary Policy Committee (MPC) of the Reserve Bank of India slashed the short-term lending rate, or repo rate, by 25 basis points to 6 per cent. The MPC announced its decision on Wednesday afternoon.
The reverse repo rate has been adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the bank rate to 6.25 per cent.
The rate cut was in line with market expectations. As many as 17 of 20 market analysts who had participated in an ET survey had predicted a 25 bps rate cut. The central bank had last cut the policy rate in October 2016. The MPC is headed by RBI Governor Urjit Patel.
Four of six MPC members, Dr. Chetan Ghate, Dr. Pami Dua, Dr. Viral V. Acharya and Dr. Urjit R. Patel were in favour of the monetary policy decision, while Dr. Ravindra H. Dholakia voted for a policy rate reduction of 50 basis points and Dr. Michael Debabrata Patra voted for status quo.