RBI Credit Policy: Here are 10 key takeaways

The Monetary Policy Committee has cut the repo rate by 25 bps to 5.75 percent. One basis point is a hundredth of a percentage point. The repo rate is the rate at which banks borrow from the central bank.

Here are the key takeaways from the policy meet:

- The MPC unanimously votes 6-0 for a rate cut, the second since its inception in October 2016

- The RBI has changed its policy stance to accommodative from neutral. This means it sees scope to accommodate growth concerns by supporting efforts to boost demand and reinvigorate private investment

- The RBI cuts its FY20 GDP growth forecast to 7 percent from 7.2 percent

- April to September FY20 GDP growth forecast cut to 6.4-6.7 percent from 6.8-7.1 percent

- September 2019 to March 2020 GDP growth forecast revised to 7.2-7.5 percent from 7.3-7.4 percent

- The central bank has raised its H1 FY20 consumer inflation estimate to 3-3.1 percent from 2.9-3 percent

- To issue draft for “on-tap” licensing of small finance banks by August-end

- To issue instructions on banks' leverage ratio before June 30

- Group on liquidity management framework expected to submit report by mid-July

- High-frequency indicators show service sector activity moderation

- To scrap RBI transaction charge for RTGS, NEFT systems

- To form committee to study    ATM charges, fees

- Repo rate slips to the lowest level since July 2010

- Inflation expectations of households unchanged for one-year horizon

- Risks to inflation outlook remain broadly balanced

- Headline inflation remains below target after pass-through of two rate cuts