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.

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