RBI reduced the economic growth rate estimate to 6.1% for the current financial year (2019-20). The last estimate of growth was 6.9%.
New Delhi| In an effort to give a boost to the the economy, the Reserve Bank of India (RBI) on Friday reduced its key policy rate for the fifth time in a row. The RBI has reduced the repo rate by 25 basis points to 5.15 per cent in the review meeting of this Monetary Policy Committee (MPC), bringing the total reduction in the repo rate to 135 basis points this year. Earlier this rate was 5.40 per cent. For the first time in nine years, the repo rate has come down so much. The reverse repo rate has been reduced to 4.90 per cent and the bank rate to 5.40 per cent.
The six-member MPC met under the leadership of Governor Shaktikanta Das took the decision. The central bank decides on key policy rates keeping in mind the retail inflation. However, most experts are expecting another cut of 15 basis points in the December review.
RBI reduces GDP growth estimate
RBI reduced the economic growth rate estimate to 6.1% for the current financial year (2019-20). The last estimate of growth was 6.9%. The retail inflation rate for the July-September quarter has been increased from 3.1% to 3.4%. However, in the second half (October-March) of the current financial year, the retail inflation rate is expected to remain between 3.5% and 3.7%.