Reserve Bank of India (RBI) Monetary Policy Committee (MPC) on Wednesday decided to cut the repo rate by 25 basis points to six per cent. Repo Rate is the rate at which Reserve Bank of India lends money to banks in the country.RBI has cut the rate as per the expectation of market. The market expectation was that MPC would reduce policy rate by 25 basis points.
The revision in rate is the second cut after MPC became operational in October 2016. It had reduced rate by 25 basis points to 6.25 per cent in October 2016. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to: