Coronavirus pandemic | In 2020 so far, RBI cuts repo rate by 115 bps
Earlier in wake of the coronavirus pandemic, the MPC had cut the repo rate by a massive 75 basis points to 4.40 percent from 5.15 percent
May 22, 2020 / 07:39 PM IST
RBI Governor Shaktikanta Das (PTI)
The Reserve Bank of India (RBI) Governor Shaktikanta Das cut the repo rate by 40 basis points to 4 percent from 4.40 percent with immediate effect on May 22. Accordingly, the reverse repo rate stands adjusted to 3.35 percent.
All six members of the monetary policy committee (MPC) voted for a reduction in the policy repo rate. However, five members voted for a reduction in the policy rate by 40 bps, and one voted for 25 bps.
This is was the third MPC meeting in 2020 so far. The policy rate is now down to 4 percent from 5.15 percent in 2019.
Earlier in wake of the coronavirus pandemic, the MPC had cut the repo rate by a massive 75 basis points to 4.40 percent from 5.15 percent.
The MPC also maintained its accommodative stance. Das said the decision was taken at an off-cycle meeting of the MPC that was undertaken over the past three days.
GDP growth in FY21 is expected to remain in the negative territory, with some pick up in the second half, Das said.