Just in: The monetary policy comittee decides to cut policy rate by 25 basis points

The monetary policy comittee (MPC) decided to cut policy rate by 25 basis points in its debut policy review. The repo rate which was earlier 6.50 per cent will now go down to 6.25 per cent. All the six members of MPC were in favour of the rate cut and the RBI said that the decision of the MPC is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by Q4 of 2016-17.