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RBI Governor Shaktikanta Das announced a cut in the repo rate by 40 basis points (bps) to 4 per cent. The central bank simultaneously reduced the reverse repo rate to 3.35 per cent. The central bank unexpectedly cut its key deposit rate or reverse repo rate to 3.75% to discourage banks from parking idle funds with it and spur lending.
Mumbai: RBI Governor Shaktikanta Das announced a cut in the repo rate by 40 basis points (bps) to 4 per cent, while addressing his third press conference to announce measures to deal with Covid-19 crisis. The RBI`s monetary policy committee in an off-cycle meeting voted 5-1 to for a 40 bps repo rate cut, the Governor said. The central bank simultaneously reduced the reverse repo rate to 3.35 per cent.
On March 27, the RBI had slashed the repo rate by 75 bps to stimulate growth. And in April, the central bank unexpectedly cut its key deposit rate or reverse repo rate to 3.75% to discourage banks from parking idle funds with it and spur lending.
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