Friday (October 4): The Reserve Bank of India today, as expected, cut its key rates by 0.25 per cent to boost economy from six-year low saying reduction was necessary to revive growth.
The recent cut in key policy rates is at its lowest levels in nearly a decade.
The six-member Monetary Policy Committee (MPC) cut the repo rate INREPO=ECI by 25 basis points to 5.15%, for a fifth straight meeting this year and in line with expectations in a Reuters poll. The reverse repo rate INRREP=ECI was reduced to 4.9%.
With first quarter GDP growth plunging to 5 per cent, the RBI cut its estimate of economic growth in the current fiscal to 6.1 per cent from its earlier estimate of 6.9 per cent.
The repo rate, at which it lends to the system, has been brought down to 5.15 per cent to help reduce borrowing costs for home and auto loans, which are now directly linked to this benchmark.
This is the fifth straight cut in rates by the Reserve Bank in its key rates in as much policy reviews in 2019, and takes the total quantum of reductions to 1.35 per cent.
All six MPC members voted in favour of a rate cut and for retaining the accommodative stance, the statement said.
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