RBI cuts repo rate by 25 bps
The Reserve bank of India has reduced the key policy rate or the repo rate by 25 bps to 6.25 per cent in the fourth bimonthly policy review announced on Tuesday.
This is the first rate decision that was made by a committee, that is, Monetary Policy Committee. There are six members in the MPC headed by RBI Governor Urjit Patel.
“Six members voted in favour of the monetary policy decision,” the RBI said in a press statement.
The RBI said the committee has noted that the sharp drop in retail inflation reflects a downward shift in the momentum of food inflation.