The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) has decided to cut the repo rate by 25 basis points from 6.25 per cent to 6 per cent, RBI Governor, Sanjay Malhotra, announced on Wednesday. The committee has also changed its stance from ‘neutral’ to ‘accommodating’. This is the central bank’s first monetary policy decision of the new financial year. The three-day Monetary Policy Committee (MPC) meeting began on Monday.
The governor said that after a thorough evaluation of the evolving macroeconomic and financial conditions, as well as output trends, the MPC voted unanimously to lower the policy repo rate by 25 basis points, effective immediately.
He added that as a result, the Standing Deposit Facility (SDF) rate, under the liquidity adjustment facility, will be adjusted to 5.75 per cent, while the Marginal Standing Facility (MSF) rate and the bank rate will both be set at 6.25 per cent, Malhotra added. He also noted that growth continues to remain on a recovery trajectory.
(This is a developing story)
