In its first bi-monthly meeting of this financial year, the RBI on Thursday lowered the GDP growth forecast for the current fiscal to 7.2 per cent from the earlier estimate of 7.4 per cent amid probability of El Nino effects on monsoon rains and uncertain global economic outlook.
The central bank also reduced the repo rate by 25 basis points to 6 per cent from earlier 6.25 per cent. However, it kept monetary policy stance at ‘neutral’. In the second policy review under Governor Shaktikanta Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut. Last time repo rate stood at 6 per cent was in April 2018. “The rate cut is in consonance of achieving the medium term objective of maintaining inflation at the 4 per cent level while supporting growth,” RBI said in a statement.
Home, car loan EMIs may come down as RBI cuts key interest rate by 0.25%
