RBI cuts repo rate by 35 bps

RBI cuts repo rate by 35 bps

Agency News

Mumbai, Aug 7: The Reserve Bank of India on Wednesday cut the repo rate for the fourth time this year by 35 basis points (bps) to 5.4 per cent in its third bi-monthly policy review of the financial year. Consequently, the reverse repo rate now stands at 5.15 per cent.

RBI's Monetary Policy Committee (MPC) also announced lowering of the FY20 GDP growth forecast to 6.9 per cent from 7 per cent, earlier. Repo rate is the one at which the central bank lends money to the commercial banks, in case of any shortfall of funds. This is the fourth straight rate cut by the apex bank in 2019.UNI