Home » Business » Reserve Bank of India has cut repo rate by 35 basis points to 5.40 per cent to give a fillip to the economy
Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das during RBI's bi-monthly policy review meeting, in Mumbai, Wednesday, Aug 7, 2019. (PTI Photo/Mitesh Bhuvad)(PTI8_7_2019_000087B)

Reserve Bank of India has cut repo rate by 35 basis points to 5.40 per cent to give a fillip to the economy

Mumbai:7/8/19:Reserve Bank of India (RBI) has cut repo rate by 35 basis points to 5.40 per cent to give a fillip to the economy. This is the fourth consecutive time that the Monetary Policy Committee has reduced the rates. In the earlier three policies, RBI had reduced repo rate by 25 basis points each.

Consequently, the reverse repo rate under the liquidity adjustment facility stands revised to 5.15 per cent, and the marginal standing facility rate and the Bank Rate to 5.65 per cent. In its third bi-monthly policy announced today, RBI has decided to maintain the accommodative stance of monetary policy.

Repo rate is the rate at which RBI lends to banks generally against government securities while the reverse repo is the rate at which RBI borrows money from the banks. Both these rates are key determinants for customers availing loans from banks.

RBI Governor Shaktikanta Das said the Central bank has been pre-emptive in its actions on rates. He said RBI has always provided adequate liquidity to the system.

On the inflation front, RBI has informed that actual headline inflation for first quarter of 2019-20 stood at 3.1 percent and in alignment with the Committee’s projections of 3-3.1 percent inflation figure for first half of the current financial year.

While marginally lowering its GDP growth forecast for current fiscal to 6.9 percent from 7 percent as previously predicted, RBI has said the base effect of policy transmission will turn favourable only in the second half of 2019-20.

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

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