RBI Policy: The MPC cuts Repo Rate by 25 bps
The Monetary Policy Committee cuts Repo Rate by 25 bps to 5.75% and FY20 GDP growth estimate to 7% from 7.2%. And it adjusts Rev Repo Rate to 5.50%.
It is the third time RBI has been reduced the repo rate by 25bps with a total of 75bps from 6.5% to 5.75%.
No charges to be levied on RTGS and NEFT transactions soon.
Governor about to address press conference post-release of second bi-monthly monetary policy.
On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today decided to:
reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 5.75 percent from 6.0 percent with immediate effect.
Consequently, the reverse repo rate under the LAF stands adjusted to 5.50 percent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0 percent.
The MPC also decided to change the stance of monetary policy from neutral to accommodative.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 percent, while supporting growth.
The main considerations underlying the decision are set out in the statement below.
Hit the Link for MPC ' official statement(RBI Policy): https://twitter.com/RBI/status/1136518106677780480