New Delhi: RBI Governor Shaktikanta Das cut the interest rate by 0.25 percent to 6.25 percent in a unanimous decision by the new rate-setting panel MPC. The move will lead to reduction of lending rate by banks leading to lower EMI for housing, car loan and corporate borrowers.
This is Das' first monetary policy review after taking charge as the RBI Governor, replacing Urjit Patel.
The 6-member Monetary Policy Committee, headed by Patel, reduced repo rate or the short term rate at which central bank lends to banks, to 6.25 percent. Consequently, the reverse repo rate has also come down by a similar percentage point to 6 percent.
The RBI had maintained status quo on the key lending rate (repo) in its last three bi-monthly policy reviews after raising the rate twice by 25 basis points each in the fiscal.
Das, in his maiden monetary policy review, has moved away from the usual practice of announcement 2:30 pm. Earlier, when Urjit Patel took charge as the RBI Governor, he shifted from the usual practice of announcement at 11 am and presented the fourth bi-monthly (his maiden) monetary policy review at 2:30 pm after the MPC meeting.
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