Mumbai: In the first bi-monthly monetary policy meet of the current financial year, the Reserve Bank of India (RBI) on Thursday cut its repo rate under liquidity adjustment facility (LAF) by 25 basis points to 6% with immediate effect.
This is the second consecutive rate cut from RBI under new Governor Shaktikanta Das, after a rate cut in February.
The repo (or repurchase) rate is the rate of interest which the RBI charges to lend short-term loans to the commercial banks.
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 six-member Monetary Policy Committee (MPC) led by RBI Governor also decided to maintain the neutral monetary policy stance.