SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

RBI Governor opted for 25 bps repo rate cut: MPC minutes

17 Aug 2017 Evaluate

The minutes of the Monetary Policy Committee (MPC) Meeting has revealed that RBI Governor Urjit Patel had chosen for a 25 basis points cut in the key policy rate (repo), arguing that the present low level of food prices was rare and vulnerable to upward pressures. On lower lending rates, he said that effective transmission of a policy rate cut is the key to achieving the goal of supporting the non-inflationary growth. He also pointed out that while the transmission has improved, there is still some space for banks to cut their lending rates, especially on the existing loan portfolios.

RBI Governor further said that credit growth has also been low partly because of risk aversion among banks on account of stressed assets position. Therefore, he stressed that resolution of stressed balance sheets of banks will remain important for reviving credit demand and the investment cycle. The six-member MPC headed by RBI governor had met on August 1 and 2 to decide this fiscal's third bi-monthly monetary policy. Based on the majority view at the MPC meet, the central bank cut the rate by 25 basis points to 6 percent, whereas the industry and other stakeholders were expecting more than that. 

Four members of the MPC, including RBI Governor Urjit Patel, were in favour of the monetary policy decision, while Ravindra H. Dholakia voted for a policy rate reduction of 50 basis points and another member Michael Debabrata Patra voted to hold rates at 6.25 percent. The minutes noted that the decision of the MPC was consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 percent, while supporting growth.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: