RBI also lowered its growth projection to 6.1-5.3 per cent for second quarter of current financial year.The Reserve Bank of India lowered the repo rate by 25 basis points to 5.15 per cent on Friday, maintaining its "accommodative" policy stance in a bid to revive economic growth.
The repo rate is the rate at which the central bank lends short term funds to the banks.
All six members of the Monetary Policy Committee, chaired by Governor Shaktikanta Das, voted to reduce the repo rate and maintain the existing policy stance.
Today's move marks the fifth consecutive reduction in the repo rate so far this calendar year.The cut was in line with economists' expectations.
A majority of economists had in a poll by news agency Reuters predicted a repo rate cut of 25 basis points to 5.15 per cent.The RBI has in total reduced the key interest rate by 135 basis points or 1.35 percentage point in five consecutive bi-monthly reviews since February.The central bank said the decisions are in consonance with its medium-term target of 4 per cent for consumer inflation.The Reserve Bank of India slightly revised its inflation target upwards to 3.4 per cent for the second quarter of the current financial year while projections were retained at 3.5-3.7 per cent for the second half of current financial year and 3.6 per cent for the first quarter of 2020-21.The RBI also lowered its growth projection to 6.1-5.3 per cent for second quarter of current financial year and in the range of 6.6-7.2 per cent for the second half of the current fiscal year.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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