In its 3rd Bi-monthly Monetary Policy Committee meeting, the Reserve Bank of India has reduced the policy repo rate by 35 basis points (bps). The MPC has also decided to maintain the accommodative stance of monetary policy. The main decisions taken in the 3rd Bi-monthly Monetary Policy Committee meeting are:
- The repo rate under the liquidity adjustment facility (LAF) was reduced from 5.75% to 5.40%. The benchmark rate is now at its lowest since April 2010.
- The reverse repo rate under the LAF stands revised to 5.15%.
- The marginal standing facility (MSF) rate and the Bank Rate revised to 5.65%.
- RBI has also reduced the real GDP growth for 2019-20 from 7% to 6.9%.
Static/Current Takeaways Important For SBI Clerk Mains:
- Governor of RBI: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.
Source: The Live Mint