This Article is From Aug 07, 2019

RBI Policy Review Updates: Central Bank Cuts Key Lending Rates By 0.35%

RBI Monetary Policy Updates: In the earlier three policies, the central bank had reduced repo rate by 25 basis points each.

RBI Policy Review Updates: Central Bank Cuts Key Lending Rates By 0.35%

Repo rate is the key interest rate at which it lends short-term funds to commercial banks.

The Reserve Bank of India's Monetary Policy Committee (MPC) cut key interest rate for the fourth consecutive time. Reserve Bank's MPC cut repo rate by 35 basis points or 0.35 per cent to 5.40 per cent, the lowest in over nine years. Repo rate is the key interest rate at which the central bank lends short-term funds to commercial banks. The six-member monetary policy committee (MPC) also maintained the "accommodative" stance on the monetary policy. In the earlier three policies, the central bank had reduced repo rate by 25 basis points each. The RBI also revised real GDP growth for 2019-20 downwards to 6.9 per cent from 7 per cent in the June policy.

Here are the LIVE updates of the third bi-monthly policy review by the Reserve Bank of India (RBI):

Aug 07, 2019 13:24 (IST)
According to experts, the rate cut shows RBI's concern about growth. (Read more)
Aug 07, 2019 13:12 (IST)
Aug 07, 2019 12:41 (IST)
Aug 07, 2019 12:26 (IST)
RBI said that even as the past rate cuts are being gradually transmitted to the real economy, the benign inflation outlook provides headroom for policy action to close the negative output gap.
Aug 07, 2019 12:23 (IST)
RBI governor says 35 basis points repo rate cut is balanced and a 25 basis points reduction would have been inadequate.
Aug 07, 2019 12:21 (IST)
Net FDI flows moderated to $6.8 billion in April-May from $7.9 billion a year ago, says RBI governor
Aug 07, 2019 12:14 (IST)
Inflation currently projected to remain within target over 12-month period, says RBI governor.
Aug 07, 2019 12:07 (IST)
Aug 07, 2019 12:07 (IST)
Financial markets driven by monetary policy stances of major central banks, intensifying geopolitical tensions, says RBI governor Shaktikanta Das.
Aug 07, 2019 12:02 (IST)
Aug 07, 2019 11:58 (IST)
Aug 07, 2019 11:56 (IST)
The RBI maintained its "accommodative" stance but said further rate reductions would depend on the level of inflation.

Aug 07, 2019 11:53 (IST)
Reserve Bank's MPC cut repo rate by 35 basis points or 0.35 percentage points to 5.40 per cent,
Aug 07, 2019 10:47 (IST)
Investors are wary as most banks have not passed on the central bank's previous rate cuts to the consumers. According to Saurabh Jain, assistant vice-president (research), SMC Global Securities, RBI has already axed rates by 75 basis points but that hasn't led to any meaningful transmission in the economy as banks didn't lower rates.
Aug 07, 2019 10:21 (IST)
Caution prevailed in the domestic stock markets ahead of the outcome of a three-day policy review meeting of the central bank. The S&P BSE Sensex index fell as much as 91.37 points to 36,885.48 in early trade, and the broader NSE Nifty benchmark moved to 10,913.40, down 34.85 points from the previous close. (Read more)
Aug 07, 2019 10:15 (IST)
Aug 07, 2019 10:14 (IST)
The last time the RBI made so many back-to-back cuts was after the global financial crisis over a decade ago, when most major central banks were desperate to revive economic growth.
Aug 07, 2019 10:14 (IST)
Almost 80 per cent of 66 economists surveyed by news agency Reuters expected the RBI to cut its benchmark repo rate by 25 basis points. Three respondents predicted a 50 basis points cut and the remaining 10 forecast the rate would be left unchanged. One basis point is equivalent to 0.01 per cent.

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