Explained - RBI cuts repo rate by 25 bps: What Shaktikanta Das announced and what it means for you

ZeeBiz WebTeam | Feb 07, 2019, 12:34 PM IST

RBI Monetary Policy Committee meeting: A rate cut of 25 basis points was announced in the Reserve Bank of India monetary policy committee's (MPC) three-day meeting that ended on Tuesday, under the new Governor Shaktikanta Das. RBI also changed its stance to 'neutral'. However, the MPC was expected to keep its key lending rate for commercial banks unchanged at 6.5 per cent while changing its stance from 'calibrated tightening' to 'neutral' today. The current fiscal's final bi-monthly monetary policy review announcement was made at 11.45 am today. Here is what was announced by Shaktikanta Das and what it means for you -

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1. Interest rates-

The RBI announced the cut of 0.25 per cent rate cut in repo rate. Home loans, car loans, personal loans will be cheaper now.

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2. Repo rate-

New Repo rate is 6.25 per cent. While CRR stands same at 4 per cent.

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3. Stance-

RBI has changed its stance from 'calibrated tightening' to 'Neutral'. (IANS)

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4. Inflation target-

Inflation rate target till Q3 2019-20 is 3.9 per cent. While current expected inflation rate is 2.8 per cent for the period of January to March.

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5. GDP target-

RBI has announced a revised target of GDP at 7.4 per cent for FY2019-20.

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6. Loan limit for farmers-

Now farmers can avail a loan of Rs 1,60,000 instead of Rs 1,00,000 without guarantee. (Reuters)

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