Skip to main content

MoneyWorks4Me

Just In: RBI cuts repo rate by 25 bps to 6.25%

07 Feb 2019 Evaluate

The Reserve Bank of India (RBI) has reduced repo rate by 25 basis points (bps) from 6.50% to 6.25%, in its sixth bi-monthly monetary policy statement for 2018-19. Consequently, the reverse repo rate under the LAF stands adjusted to 6.0%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.5%.

RBI has cut rate for the first time in 17 months. The Monetary Policy Committee (MPC) also changed the policy stance to ‘neutral’ from ‘calibrated tightening’. This was first money policy review for Shaktikanta Das, who took over as RBI Governor in December, 2018.