Rbi cuts repo rate by 25 bps to 6%
The Monetary Policy Committee (MPC) of the reserve Bank of India cut the repo rate by 25 basis points to 6 per cent. The decision was taken in its third bi-monthly policy reviewon August 02. The central bank had last cut the policy rate in October 2016.Four of six MPC members, Dr. Chetanghate, Dr.pamidua, Dr. Viral V. Acharya and Dr.urjit R. Patel were in favour of the monetary policy decision, while Dr. Ravindra H. Dholakia voted for a policy rate reduction of 50 basis points and Dr. Michael Debabratapatra voted for status quo. MPC decided to keep the policy stance neutral and to watch incoming data. The reverse repo rate has been adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the bank rate to 6.25 per cent.the projection of real GVA growth for 2017-18 has been retained at the June projection of 7.3 per cent, with risks evenly balanced.cpi inflation stood at 1.54 per cent in June, lower than the central bank’s target range of 2-3.5 per cent during the first half of the financial year.
Urjit Patel, rbi Governor