RBI cuts repo rate by 25 basis points
RBI Governor Shaktikanta Das has announced that the GDP projections for 2019-20 as 7.4%. The inflation rate is estimated at 3.2%-3.4% in the first half of the year 2019-2020 and it would be estimated to increase in the third quarter as 3.9% in the same financial year.
RBI cuts repo rate by 25 basis points from 6.5 percent to 6.25 percent with immediate effect and the reverse repo rate stands at 6.0%.
Here are a few key points in the RBI Policy:
Mr. Das confirmed that there is no liquidity scarcity after monitoring the situation continuously and constantly.
The collateral free agriculture loan is enhanced from Rs.1 lakh to Rs.1.6 lakhs. To benefit small farmers, RBI has enhanced Rs.60K in collateral-free agriculture loan.
The export growth on a year-on-year basis was almost flat in the months of November and December 2018, which is primarily due to a high base effect and weak global demand-ANI.
This is the first RBI Policy of Mr.Shaktikanta Das after taking the responsibilities as New RBI Chief in December 2018.