RBI Monetary Policy August 2019 HIGHLIGHTS: The Monetary Policy Committee of the Reserve Bank of India (RBI) cut the repo rate by 35 bps to 5.40 per cent third bi-monthly Monetary Policy Statement for 2019-20 on Wednesday 2019. The reverse repo rate under the LAF stands revised to 5.15 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 5.65 per cent. This is the fourth rate cut by the RBI so far in this calendar year. The RBI maintained its policy stance as accommodative similar to the one in the last policy. With the US Federal Reserve already slashing rates, the probability of another rate cut in the calendar year had gained momentum. In the June policy, the MPC had revised its inflation forecast to 3-3.1 per cent for the first six months of FY20 and to 3.4-3.7 per cent for the second half.