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RBI cuts Repo Rate by 25 basis points to 6%

KalingaTV News Network

RBIMumbai: In its 3rd bi-monthly monetary policy decision of FY 2017-18, the Reserve Bank of India (RBI) on Wednesday  reduced the Repo Rate under the Liquidity Adjustment Facility by 25 basis points from 6.25 percent to 6.0 percent.

The reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25 per cent.

The monetary policy committee (MPC) headed by RBI Governor Urjit Patel also decided to keep the policy stance neutral in consonance with the objective of achieving the medium-term target for consumer price index inflation of 4 per cent. Despite a cut in the benchmark lending rate, RBI retained its GDP forecast to 7.3 per cent.

According to RBI governor, the MPC observed that while inflation has fallen to a historic low, a decisive segregation of transitory and structural factors driving the disinflation is still elusive.