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RBI Monetary Policy Meet: Know major highlights

RBI cuts key interest rate (repo) by an unusual 35 basis points (0.35 percentage points) to 5.40 per cent

RBI Monetary Policy Meet

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Published : Aug 7, 2019, 1:08 PM IST

Mumbai:Following are the highlights of RBI's third monetary policy review for the current fiscal unveiled on Wednesday:

  • RBI cuts key interest rate (repo) by an unusual 35 basis points (0.35 percentage points) to 5.40 per cent
  • Reverse repo rate has been revised to 5.15 per cent
  • From December 2019 National Electronic Funds Transfer (NEFT) to be 24*7
  • The marginal standing facility (MSF) rate and bank rate stands at 5.65 per cent
  • Maintains the accommodative policy stance
  • Cuts GDP forecast to 6.9 per cent for the current fiscal from 7 per cent in June policy
  • Keeps retail inflation forecast within target of 3.5-3.7 per cent for second half of 2019-20
  • Four members voted for cut of 35 basis points in rate; two members voted for 25 basis points rate cut
  • Boosting aggregate demand, private investment assumes highest priority
  • Next monetary policy statement on October 4

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