RBI cuts repo rate by 25 bps, third time in a row, changes stance to “accommodative”.
Third In A Row: The Reserve Bank of India (RBI), for the third time in a row, today cut the repo rate by 25 bps to 5.75%, changing its monetary policy stance to “accommodative” from “neutral”.
In Unison: All six of the MPC members voted in favor of a 25 basis points cut.
As Expected: The move, much along expected lines, came as the growth in the gross domestic product (GDP) declined to a 21-quarter low to 5.8% in Q4FY19.
Every Action Has an Equal and Opposite Reaction: Following the announcement of the rate cut, the 10-year benchmark bond yield fell to 6.89% from 7% before the policy announcement. The Rupee strengthened to 69.28 per dollar from 69.36 earlier.
Read the second bi-monthly Monetary Policy Statement here.
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