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

By: |
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.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.