RBI reduces repo rate by 25 basis points to 5.75 %
Mumbai: The Reserve bank of India (RBI) Monetary Policy Committee on Thursday reduced the repo rate by 25 basis points to 5.75 per cent from 6.0 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 stands adjusted to 5.50 per cent and the marginal standing facility rate and the Bank Rate to 6.0 per cent.
The six-member Monetary Policy Committee headed by RBI Governor Shaktikanta Das also unanimously decided to change the stance of monetary policy from neutral to accommodative.
Taking into account weak global demand due to the escalation in trade wars and weakened private consumption in rural areas, the RBI Governor informed that the RBI has lowered the GDP growth forecast for 2019-20 to 7 per cent from 7.2 per cent.