Newdelhi:4/4/19:The Reserve Bank of India (RBI) has cut its repo rate under liquidity adjustment facility (LAF), or the rate at which it lends to banks, by 25 basis points to 6%, with immediate effect.
This is the second consecutive rate cut from RBI under new Governor Shaktikanta Das, after a rate cut in February.
The RBI on Thursday announced its first bi-monthly policy statement of the current financial year.
Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25 per cent.
The six-member Monetary Policy Committee (MPC) led by RBI Governor also decided to maintain the neutral monetary policy stance.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of plus or minus 2 per cent while supporting growth.