RBI reduces repo rate by 25 basis points to 5.15 %
Mumbai: The Reserve bank of India (RBI) Monetary Policy Committee on Friday reduced the repo rate by 25 basis points to 5.15 per cent from 5.40 per cent with immediate effect.
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 was also revised to 4.90 per cent, and the marginal standing facility (MSF) rate and the bank rate to 5.40 per cent.
This was the fifth consecutive rate cut effected by the Shaktikanta Das-led panel, and it was in addition to a cumulative 110 basis points rate cut that RBI has announced so far this year.
RBI Governor Shaktikanta Das said the MPC s seeking intensified measures to arrest slowdown.
“RBI has no reason to doubt the government commitment to meet fiscal deficit target. Government has ways and means to adhere to it and past records give no reason to doubt it,” Das said, adding that he is not aware of any demand by the government for an interim dividend of Rs 30,000 crore.