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On Tuesday, The Reserve Bank of India (RBI) has cut its repo rate by 25 basis points to 6.25 percent.
The decision of the monetary policy committee (MPC) which was headed by the new RBI governor Urjit Patel, will cheer business leaders and households as cheaper loans will help in investment and spending.
The six member Monetary Policy Committee has voted 6-0 in favour of a cut.
This was the fourth bi-monthly monetary policy of the RBI.
The policy statement says that “The government has announced several measures to cool food inflation pressures, especially with regard to pulses. These measures should help in moderating the momentum of food inflation in the months ahead. This has opened up space for policy action.”
