RBI monetary policy HIGHLIGHTS | RBI cuts interest rate by 35 bps, EMIs likely to come down

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Published: August 7, 2019 2:14:28 PM

Cuts GDP forecast to 6.9 per cent for the current fiscal from 7 per cent in June policy.

Keeps retail inflation forecast within target of 3.5-3.7 per cent for second half of 2019-20.

Following are the highlights of RBI’s third monetary policy review for the current fiscal unveiled on Wednesday:

  • RBI cuts key interest rate (repo) by an unusual 35 basis points (0.35 percentage points) to 5.40 per cent.
  • Reverse repo rate has been revised to 5.15 per cent.
  • The marginal standing facility (MSF) rate and bank rate stands at 5.65 per cent.
  • Maintains the accommodative policy stance.
  • Cuts GDP forecast to 6.9 per cent for the current fiscal from 7 per cent in June policy.
  • Keeps retail inflation forecast within target of 3.5-3.7 per cent for second half of 2019-20.
  • Four members voted for cut of 35 basis points in rate; two members voted for 25 basis points rate cut.
  • Boosting aggregate demand, private investment assume highest priority.
  • Next monetary policy statement on October 4.

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