RBI Monetary Policy HIGHLIGHTS: The Reserve Bank of India has cut the repo rate by 25 basis points in its sixth bi-monthly monetary policy statement for 2018-19. The three-day policy review meeting by the Monetary Policy Committee (MPC) began in Mumbai on Tuesday. The MPC is headed by RBI Governor Shaktikanta Das. In its last bi-monthly monetary policy, the bank had kept the repo rate unchanged at 6.5 percent and the reverse repo rate at 6.25 percent.
RBI has also changed the stance of the monetary policy to ‘neutral’ from ‘calibrated tightening’.
Most economists had predicted that the repurchase rate would probably be kept steady at 6.5 percent, according to 32 of the 43 economists surveyed by Bloomberg as of Wednesday, with the rest expecting a 25 basis-point reduction. Real interest rates in India are among the highest in Asia, and calls for the first cut in the policy rate since August 2017 have been growing.