In line with the market expectations, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has slashed the repo rate by 25 basis points to 6 per cent at its third bimonthly policy review.
The central bank had last cut the policy rate in October 2016. The MPC is headed by RBI Governor Urjit Patel.
Four of six MPC members, Dr. Chetan Ghate, Dr. Pami Dua, Dr. Viral V. Acharya and Dr. Urjit R. Patel were in favour of the monetary policy decision, while Dr. Ravindra H. Dholakia voted for a policy rate reduction of 50 basis points and Dr. Michael Debabrata Patra voted for status quo.
The reverse repo rate has been adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the bank rate to 6.25 per cent.