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RBI cuts key interest rate by 0.25 pc to 6%

01:09 PM Apr 04, 2019 | Team Udayavani |

Mumbai: The Reserve Bank of India Thursday cut benchmark interest rate by 0.25 per cent for the second time in a row to bring interest rate to the lowest level in one year on softening inflation.

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The central bank, however, kept monetary policy stance at ‘neutral’.

In the second policy review under Governor Shaktikanta Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut.

The benchmark interest rate was cut by 0.25 per cent to 6 per cent, a move that will result in lower cost of borrowing for the banks that are expected to transmit the same to individuals and corporates.

The RBI had on February 7 had last cut interest rate to 6.25 per cent from 6.5 per cent.

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Last time repo rate stood at 6 per cent was in April 2018.

The rate cut is in consonance of achieving the medium term objective of maintaining inflation at the 4 per cent level while supporting growth, RBI said in a statement.

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