In its first meeting in FY’20, the Monetary Policy Committee (MPC) of the Reserve Bank of India, headed by Governor Shaktikanta Das, Thursday cut the key lending rate - repo rate - by 25 basis points from 6.25 per cent to 6 per cent. Reverse repo rate has been adjusted to 5.75 per cent. The committee kept the monetary policy stance at ‘neutral’. Of the six members on the committee, four voted for a rate cut while two others favoured no change.
The RBI has projected a GDP growth of 7.2 per cent for 2019-20, a revision from its February view of 7.4 per cent. It said consumer inflation was 2.57 per cent in February.
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"The need is to strengthen domestic growth impulses by spurring private investment which has remained sluggish," the RBI said in a statement. The other members of the MPC are Pami Dua, Ravindra Dholakia, Michael Debabrata Patra, Chetan Ghate and Viral Acharya.
This is the second monetary policy review under Das. In the last one in February, the committee had cut repo rate by 25 basis points from 6.50 per cent to 6.25 per cent. In the last review in February, the MPC shifted its stance to 'neutral' from 'calibrated tightening'.
The last time repo rate was at 6 per cent was in April 2018.
(With inputs from PTI)