Login ID:
Password:
Partner Login
Contact Us : 7066511911

RBI Cuts Repo Rate By 0.25%, Changes Policy Stance To 'Neutral'

7 Feb 2019 11:59 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

MUMBAI (Commoditiescontrol) - The Reserve Bank of India on Thursday unexpectedly cut interest rates and shifted its monetary policy stance to "neutral" from "calibrated tightening" signalling further softening on its approach towards interest rates.

In the first policy review under Governor Shaktikanta Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut, while the decision to change policy stance was unanimous.

Benchmark interest rate/repo rate was cut by 0.25 percent to 6.25 percent, a move that would result in lower cost of borrowing for the banks that are expected to transmit the same to individuals and corporates.

The RBI cut its estimates on headline inflation - which cooled off to a 18-month low of 2.2 percent in December - for the next year, and expects the number to come at 2.8 percent in March quarter, 3.2-3.4 percent in first half of next fiscal and 3.9 percent in third quarter of FY20.

"Headline inflation is projected to remain soft in the near term, reflecting the current low level of inflation and the benign food inflation outlook," the MPC resolution said, adding "we need to be watchful of vegetable prices, oil prices, trade tensions, health and education inflation, financial market volatility and monsoon outcomes".

The rate cut is in consonance of achieving the medium term objective of maintaining inflation at the 4 percent level while supporting growth, it said.

Deputy Governor Viral Acharya and another MPC member, Chetan Ghate, voted for status quo in interest rates, while Das and three others voted for a cut in interest rates.

(By Commoditiescontrol Bureau)


N       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Top 5 News
India Hikes Import Duty On Pakistani Goods To 200%
Urad Quotes Lower At Chennai In Ready Business
Punjab Sugar Mill Prices – 16 february 2019.
Tur Procurement In Maharashtra Bring Poor Response As P...
NAFED Procures 112.65 MT Urad In Rabi-2019 Season So Fa...
Top 5 Special Reports
Weekly: ICE Cotton May See Some Recovery Next Week
Weekly Soya Market: Mixed Trend Likely On US-China Trad...
Weekly CPO: Indian CPO to Trade Mixed With US-China Tra...
Weekly Rapeseed: Expectation of Fresh Crop to Pressuriz...
Technical: Wheat Spot Delhi-Up Trend In Progress
Copyright © CC Commodity Info Services LLP. All rights reserved.