RBI Policy: MPC cuts repo rate by 25 basis points to 6.25%

RBI Policy MPC Cuts Benchmark Rate RBI Governor Emphasises Growth

The repo rate is the rate at which the central bank lends short-term money to the banks.

It marked the first interest rate decision under new bank chief Shaktikanta Das, an ally of Modi who was appointed in December after his predecessor, Urjit Patel, quit following a public spat with the administration over alleged government interference.

"Over the next 12 months, if we see that inflation remains at 3.9 per cent, maximum of 4 per cent or below, then I think there is room to act", Das said.

When asked if there exists more room for further rate cuts, given the estimate of inflation trending at 3.9 per cent in the third quarter of the next fiscal, Das seemed to reply in the affirmative.

When asked about transmission and banks' reluctance to pass on the rate decreases to borrowers, Das said it is up to the individual banks to take a call on their lending, underlining that the RBI only gives a directional move.

Headline inflation will likely persist within the RBI's tolerable level of 4 percent.

It can be noted that the RBI had hiked rates twice in quick succession in 2018 but has been cutting its inflation projections ever since, leading to the rate cut Thursday-the first since the middle of 2017. This too at a time when GDP growth forecast has been revised downward, both for FY19 to 7.2 percent from 7.4 percent earlier at that for FY20 to 7.4 percent. The repo rate cut will lead to a decrease in EMIs on Home Loans, Car Loans and Personal Loans as the banks would likely decrease the interest rates.

Houston Rockets acquire Iman Shumpert in 3-team deal
Just over a week ago, Chriss requested either more playing time or a trade from the Suns and it appears he has his wish. They also save about $6.1 million in tax payments this season and get off the $15.6 million Knight is owed next season.

Jennifer Lawrence And Her Big Arty Boyfriend Are Officially Engaged
Her other accolades include four Gold Globes titles, two BAFTA gongs, three Kids' Choice awards and five MTV Movie trophies. The couple were spotted dining together in NY at Raoul's , with Jennifer seen showing off a "giant rock" on her finger.

That's right - they just introduced SpongeBob's 'Sweet Victory' at halftime
For SpongeBob fans everywhere, the performance was extremely disappointing - and they made their feelings known on Twitter , too. Controversy be darned, Maroon 5 took the stage alongside Travis Scott and Big Boi on Sunday for the Super Bowl 53 halftime show.

The government was believed to be unhappy with the RBI over a number of issues, including its apparent reluctance to cut rates to stimulate the economy.

With inflation largely under control, the big concern for the government is growth, particularly in an election year.

The GDP growth for 2019-20 is projected at 7.4 per cent - in the range of 7.2-7.4 per cent in H1, and 7.5 per cent in Q3 - with risks evenly balanced, it said in its press release. "The need is to strengthen private investment activity and buttress private consumption". The monetary policy support along with the fiscal stimuli of one trillion rupee in the Union Budget comes as a booster dose for the economy.

Four of six MPC members voted to cut the rates, while all backed the stance change to "neutral" from "calibrated tightening".

"In particular, trade tensions and associated uncertainties appear to be moderating global growth", it said.

From interviews to new reports, catch ThePrint live in action on our YouTube channel.

Related news:

Hot News

isis-killer-beheading-video-story-top Clippers Trade Tobias Harris to Sixers
Feb 07, 2019 - 00:58
With Harris set become a free agent at season's end, the Clippers faced the prospect of getting nothing in return for him. They had also expressed interest in Orlando Magic wing Terrence Ross .

isis-killer-beheading-video-story-top Emiliano Sala: Nantes demand payment from Cardiff City for £15m transfer
Feb 07, 2019 - 00:58
French soccer club Nantes are demanding payment from Cardiff over the transfer of Emiliano Sala , according to reports. A source at the Welsh club says the contract will be honoured but not before Cardiff have clarified " all the facts ".

isis-killer-beheading-video-story-top Vietnamese proud to host Trump-Kim summit
Feb 07, 2019 - 00:51
Trump's meeting with Kim last June in Singapore produced a joint statement between the two leaders but no concrete plan for denuclearization.

isis-killer-beheading-video-story-top Ariana Grande not performing at The Grammys 2019
Feb 07, 2019 - 00:45
The 25 year old pop star reportedly had a disagreement with Grammy producers over what song she would perform during the show, according to Variety .

isis-killer-beheading-video-story-top 'Special place in hell': EU's Tusk slams Brexiteers
Feb 07, 2019 - 00:44
He said that in light of ongoing uncertainty in the UK, EU leaders have agreed that no-deal preparation must continue and intensify.

isis-killer-beheading-video-story-top Venezuelan opposition welcomes Canada's call for military backing
Feb 07, 2019 - 00:40
Canada and its Latin American allies in the Lima Group , along with the United States, have been pushing for Maduro's departure. Guadio, head of Venezuela's National Assembly, last month declared himself to be the South American country's interim ruler.

isis-killer-beheading-video-story-top Digital ads lift Google but shares hit by costs
Feb 06, 2019 - 02:42
Alphabet (NASDAQ: GOOG ) drops 2.5% aftermarket on Q4 results that beat EPS and revenue estimates with a 22% Y/Y revenue growth. Before the results were released the company's share price had rallied after stumbling along with its peers a year ago .

isis-killer-beheading-video-story-top Lionel Messi and Dembele hand Barcelona fitness boost ahead of El Clasico
Feb 06, 2019 - 02:31
Barca's French forward Ousmane Dembele is unlikely to be fit for the game, as he is still recovering from a hamstring injury. Messi's absence at the Camp Nou would be a blow to Barcelona , particularly with the Argentinian in such blistering form.

isis-killer-beheading-video-story-top Freezing rain coming, ice on roads
Feb 06, 2019 - 02:08
It warns freezing rain Thursday and high winds early Friday could cause more problems, like downed wires or other safety hazards. Tuesday , however, is expected to see sunny skies and a forecast high of 5 C - eight degrees warmer than on Monday.

isis-killer-beheading-video-story-top Carrie Lam wishes all a healthy and prosperous Year of the Pig
Feb 06, 2019 - 01:57
However, for more information regarding the new addition make sure to check back on update day. Despite a slowing economy , more Chinese are travelling overseas during the holidays.

isis-killer-beheading-video-story-top Trump Invites Bullied Student, Synagogue Shooting Survivors to State of the Union
Feb 06, 2019 - 01:28
But they had plenty to say about Trump's new top political foe, Speaker Nancy Pelosi of California and her fellow Democrats. A file photograph of US President Donald Trump at a rally at the Mississippi Coast Coliseum in Biloxi, Mississippi.

isis-killer-beheading-video-story-top Super Bowl reaches 100.7 million viewers, lowest since 2009
Feb 06, 2019 - 01:21
Instead, the team visited Obama at his home in Washington, D.C., while on a road trip to play the Wizards. The Patriots hold the record for number of Super Bowl appearances, at 11.

isis-killer-beheading-video-story-top Injured Liverpool defender Gomez to undergo surgery to assist recovery
Feb 05, 2019 - 01:59
Last season, Liverpool were one of the strongest attacking sides in Europe but it was their defence that let them down each time . Thoughts on the actions of West Ham's ground staff? Speaking after the game, the 63-year-old said: "That's their strength".

isis-killer-beheading-video-story-top Gary Neville Has Predicted When Chelsea Will Sack Maurizo Sarri
Feb 05, 2019 - 01:32
Chelsea FC were 5-0 winners against Huddersfield Town on Saturday afternoon to hoist themselves back into the top four. In the box he's unbelievable, so he will score more goals , I think".

isis-killer-beheading-video-story-top Chiefs fans are livid after Tony Gonzalez says Falcons 'made my career'
Feb 05, 2019 - 01:10
Reed, a nine-time Pro Bowl selection, teamed with Hall of Fame linebacker Ray Lewis on some of Baltimore's stout defenses. Champ Bailey , Ty Law, Kevin Mawae and Johnny Robinson round out the list of players selected from the modern era class.