RBI Cuts Repo Rate by 25 Basis Points

Monetary Policy Committee comprises of 6 members has decided to cut in favour of 4 :2

Who are the 6 members of RBI MPC

Governor – Shaktikanta Das, Ravindra Dholakia, Michael Debabrata Patra & Pami Dua voted in favour of the decision to reduce the policy repo rate by 25 basis points while Viral Acharya & Chetan Ghate voted to keep the policy rate unchanged

Current Repo Rate is 6 %

RBI now estimates Consumer price Inflation (CPI)

For 1st half i. e April to September 2019 to be 2.9 to 3 %

September to March 2020 to be 3.5 to 3.8 %

The current consumer Inflation rate is 2.57%

Wholesale inflation is 2.93 %

Core Inflation is 5.3%

RBI expects GDP to be 7.2 % for financial year April 2019 to March 2020

RBI expects second half GDP would pick up then first half of financial year

Rating Agency FITCH expects India’s GDP at 6.8 % for 2020
7.1 % for 2021

The RBI rate cut is consistent with RBI’s policy stance, I think it will be good for growth: Chief Economic Advisor, Krishnamurthy Subramanian

Sagar U.S