RBI Cuts Repo Rate

The Reserve Bank of India has reduced the key policy rate or the repo rate by 25 Basis Points to 6% in its third monetary policy review on Wednesday, as retail inflation softened, PTI reported. This is the second rate cut by the Monetary Policy Committee since its inception in October. “The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index inflation of 4% within a band of +/- 2%, while supporting growth,” the RBI said.