RBI reduces repo rate by 25 basis points to 5.75 %

What To Expect From Shaktikanta Das Led Monetary Policy Committee Today

Addressing the media after the monetary policy meeting, the Governor noted that it had taken the apex bank more than anticipated time for coming out with a revised circular on bad loans. The six-member Monetary Policy Committee headed by RBI Governor Shaktikanta Das also unanimously chose to change the stance of monetary policy from neutral to accommodative. This might be a sigh of relief for common man as loans are expected to get cheaper.

Benchmark interest rate was cut by 0.25 per cent to 5.75 per cent from 6.00 per cent, a move that would result in lower cost of borrowing for the banks that are expected to pass on the benefits to individuals and corporates.

The repurchase rate was lowered by 25 basis points to 5.75 per cent, the lowest in nine years, as predicted by 31 of 43 economists surveyed by Bloomberg News.

Thursday announced a cut in key policy rates by 25 basis points, a move that will aid the Narendra Modi government's efforts to boost growth that fell to a five-year low in the quarter ended March.

While marginally increasing its inflation projection to 3-3.1 per cent for the first half of the fiscal year 2019-20, which is within the comfort range of 2-6 per cent set by the government, RBI cut the GDP growth targets sharply to 7 per cent for FY20 on weak global scenario and dip in private consumption. The RBI had retained its "neutral" stance after the rate cut in April but now it has changed its stance to "accommodative".

PM: The six-member MPC unanimously voted for the rate cut by 25 basis points and the stance change in its policy.

Beyond another 25 bps rate cut in August, the RBI may find it hard to cut rates further in a rising inflation scenario.

Ash Barty overcomes Madison Keys to reach semi-final
Before the 2019 French Open , Mair recommended betting Vondrousova at 60-1 to win the title - one of only three players he backed. Most impressive, perhaps, was this: Halep had won 16 return games in a row coming in, but Anisimova saved 6 of 7 break points.

Asia's third largest economy grew at a much slower-than-expected 5.8% in the last quarter, far below the pace needed to generate jobs for the millions of young Indians entering the labour market each month. Even on a quarterly basis, GDP witnessed a growth slowdown over 4QFY18-4QFY19, continuing the trend observed over 1QFY17-1QFY18. "Both measures will help improve the liquidity situation in the economy as well as support economic growth", says Mahesh Singhi, Founder & MD, Singhi Advisors.

The RBI will ensure that there is liquidity in the system to meet the productive requirements of the economy. "In light of recent developments, there is a need to strengthen the corporate governance framework of CICs", said RBI.

PM: Liquidity in the system turned into an average daily surplus of Rs 66,000 crore in early June after remaining in deficit during April and most of May due to restrained government spending, says the RBI. However, in the post-policy interaction with journalists, the governor made it clear that his focus is on financial stability and that the RBI will be making available adequate liquidity at the system level.

PM: Inflation outlook at 3.0%-3.1% in first half of 2019-20 and 3.4%-3.7% in second half of the year.

A security guard's reflection is seen next to the logo of the Reserve Bank Of India (RBI) at the RBI headquarters in Mumbai, India, June 6, 2019.

PM: The RBI has made a decision to do away with charges levied on RTGS and NEFT transactions, banks will be required to pass this benefit to their customers.

Related News:

  • James is Man United-bound as Solksjaer begins overhaul

    James is Man United-bound as Solksjaer begins overhaul

    A left-winger by trade, James lit up the EFL Championship in the 2018-19 season by virtue of a series of noteworthy performances. The deal will see United pay around £15m up front for the twice-capped global with the remainder in add-ons.
    Zdeno Chara returns to practice ahead of Game 5

    Zdeno Chara returns to practice ahead of Game 5

    Chara, wearing a full shield for protection, hit Blues forward Brayden Schenn 15 seconds into his first shift. Boston returned to TD Garden with a prime opportunity to retake a series lead following a 4-2 loss in St.
    Hawks Now Have Pick Flexibility To Move Up In NBA Draft

    Hawks Now Have Pick Flexibility To Move Up In NBA Draft

    Crabbe averaged just 9.6 points last season, though he shot 37.8 percent from 3-point range. Atlanta now owns the eighth, tenth and 17th picks in the draft.
  • Barcelona make final offer for de Ligt

    Barcelona make final offer for de Ligt

    According to the Mirror , Barcelona , Liverpool , Machester United, Paris Saint-Germain and Juventus all want the player. The defender is getting ready with Holland to take on England in the "Final Four" of the Nations League.
    Trump says 'fine' if Iran wants to open talks

    Trump says 'fine' if Iran wants to open talks

    The President was also asked about the possibility of using the "red button" and using nuclear weapons against Iran. We can turn that around very quickly but the sanctions have been extraordinary [in] how powerful they have been".
    Amazon's drone delivery service is one step closer to taking flight

    Amazon's drone delivery service is one step closer to taking flight

    The Federal Aviation Administration has granted Amazon Prime Air permission to test its latest delivery drones in the US. The drone needs a small area around the delivery location that is clear of people, animals, or obstacles.
  • Kate Middleton & Prince William Skip the Photo Op During Trump's Royal Visit

    Kate Middleton & Prince William Skip the Photo Op During Trump's Royal Visit

    Sunday afternoon offered the Duke and Duchess of Cambridge , Prince William and Kate Middleton , a chance to connect with nature. So, it is no shock when she wore a ruffled white McQueen gown to the banquet on Monday.
    Manufacturing shrinks as Brexit stockpiling halts

    Manufacturing shrinks as Brexit stockpiling halts

    Expectations are for the measure to inch up to 50.6 from 50.4 in April and above the three-year low of 48.9 registered in March. There were however widespread reports that Brexit uncertainty had held back client demand and remained a headwind to growth.
    House Democrats Eye Their Next Investigatory Moves

    House Democrats Eye Their Next Investigatory Moves

    Trump, and instead offered reasoning why his office never considered indicting him for obstruction of justice. Speaker Pelosi maintains impeachment is still on the table, but only in the event of a major new revelation.
  • Flawless Konta Stuns Stephens To Advance To Roland Garros Semifinals

    Flawless Konta Stuns Stephens To Advance To Roland Garros Semifinals

    The Briton started the second set in similar form, earning a first break point when a huge ball skipped off the Stephens baseline. Despite being among the favourites to go deep into the tournament, Stephens has not had it as easy as predicted.
    Mueller wishes Kohli, Team India good luck for WC

    Mueller wishes Kohli, Team India good luck for WC

    We'll get to that later, as well as the shock AB de Villiers news. It's a temporary solution, but it's been known to work. News Nation is a leading Hindi News Channel.
    West Indies suffer heartbreak loss to Australia

    West Indies suffer heartbreak loss to Australia

    Having got rid of dangerman Gayle, Starc returned late in the piece and accounted for the Windies' powerful lower-order hitters. Smith had a lucky break on 26 when he top-edged a hook off Holder only for Cottrell at long leg to slip as he eyed a catch.


Most liked

Sudan military offers talks after allegedly killing 60 protesters
Sudan is now celebrating Eid al-Fitr, a Muslim holiday marking the end of Ramadan. Rights group Amnesty International blamed the RSF for this week's violence.

Melania Trump channels Princess Diana in bold ensemble during royal visit
The couple is now in France to mark the 75th anniversary of the D-Day invasion of Normandy by the hand of the Allies' forces. They were greeted by a smiling Queen Elizabeth II and Prince Charles at Buckingham Palace.

Samsung Galaxy A30 June update fixes Telegram compatibility
The Cardinal Red Galaxy S10 series stands out only because of its red hue, with all specs and features remaining the same. The company's smart speaker made its first appearance alongside the public unveiling of the Note 9 in August past year .

Braves In Talks With Kimbrel and Keuchel
Keuchel rejected the qualifying offer, which was a one-year, $17.9 million contract from the Astros in November. Bringing in a guy like Keuchel who has experience pitching in the American League would be key for the Yankees.

Destiny 2, Ghost Recon Breakpoint Reportedly Coming to Google's Stadia Streaming Service
The information was included in today's massive update, which is probably not how Bungie saw this going down. Google will hold a press conference tomorrow to talk about Google Stadia and its game at 12 p.m.

Chicago Releases 911 Calls From Jussie Smollett Incident in January
Jussie Smollett said they shouted, "This is MAGA Country" and claimed his assaulters poured a bleach-like substance over him. Chicago police on Wednesday released two 911 calls from the night in January when Jussie Smollett claimed he was attacked.

Sheldon Cottrell contender for catch of tournament
Both Australia and West Indies are full of match-winners, which makes the contest interesting. Put into bat first, defending champions Australia were all out on 288 runs.

United States stocks extend rally after more dovish Fed tilt
Additionally, some districts said the trade uncertainty had already taken a toll on local investment and employment. The possibility that the USA and Mexico may begin a series of tit-for-tat tariffs only adds to economic woes.

Normandy landings: Photos from D-Day and the Battle of Normandy
Tonight the focus shifts to France , where commemorations will be held at simple military cemeteries near the Normandy beaches. D-Day veteran Jack MacMillan, 101, from Edinburgh, who was a major in the Royal Artillery, said he will never forget that day.

U.S. Weighs Delaying Mexico Tariffs as Time for Deal Runs Short
The stakes are clear: The 25-year-old North American Free Trade Agreement made trade with Mexico largely duty-free. He said the tariffs would begin June 10 and scale up incrementally until they reach 25% on October 1.

Swamp Thing canceled days after Season 1 premiere on DC Universe
The initial 13-episode season of Swamp Thing carried a pretty large price tag for a small streaming service. Towards the end of filming, there were reports that the final three episodes of the series were canceled.

Thiem ‘forgets’ Serena incident, hits ‘tweener’ past beaten Monfils
Thiem is into the last eight at the year's second Grand Slam for the fourth time in just his sixth appearance. If she'd seen me, it would have been nicer for her to wait.

Woman who accuses Neymar of rape gives details
In the clip, Neymar revealed series of WhatsApp messages with the woman, including naked photographs of her in bed. According to Brazilian journalist Raphael Zarko, Neymar left the stadium just minutes after he was carried off.

Apple announces iPadOS, making its tablets more like laptops
As part of that feature, Apple will also let users mask their true email addresses when signing into apps and services. At WWDC 2019, Apple has taken a major leap towards boosting productivity on the iPad by announcing a dedicated iPadOS.

System off Mexico could be next named storm, target Texas
However tropical moisture and heavy rain will likely move into the lower Mississippi River valley by Wednesday and Thursday. Stratton said the storm is expected to track northwest, then northeast along the Texas coast or northwestern Gulf.