RBI cuts Repo Rate

RBI today released its 4th bi – monthly policy review.

  • The Reserve Bank of India cut repo rate by 25 base points to 5.15%. It is the lowest since 2010. This is the fifth consecutive rate cut of the Shaktikanta Das led panel.
  • The RBI also cut GDP growth estimates to 6.1% from earlier 6.9%

All the members of the MPC – Monetary Policy Committee unanimously voted to reduce the repo rate. Last month Government cut the corporate tax rate from 30% to 22% to revive the slow growth rate.

Repo rate

Repo rate is the rate at which the central bank lends money to the commercial banks. With RBI cutting repo rate, inflation would increase in the future. The current inflation of India is 3.21%. This is below the RBI target of 4%.




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