RBI Monetary Policy Key Highlights: Shaktikanta Das cuts rates by 25bps to 5.75 pct
The Reserve Bank of India's Monetary Policy Committee (MPC) at its meeting today decided to reduce the policy repo rate.
RBI Monetary Policy Key Highlights: On the basis of an assessment of the current and evolving macroeconomic situation, the Reserve Bank of India's Monetary Policy Committee (MPC) at its meeting today decided to cut the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 5.75 per cent from 6.0 per cent with immediate effect.
The highlights of the key policy decisions are:
1. The reverse repo rate under the LAF stands adjusted to 5.50 per cent.
2. The marginal standing facility (MSF) rate and the Bank Rate to 6.0 per cent.
3. The MPC also decided to change the stance of monetary policy from neutral to accommodative.
4. 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 per cent, while supporting growth.
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5. The MPC notes that growth impulses have weakened significantly as reflected in a further widening of the output gap compared to the April 2019 policy.