Mumbai: Reserve Bank of India on Thursday reduced its key lending rate from 25 basis points (BPS) to 5.75 per cent for commercial banks, a move that could make home and other loans cheaper.
Policy decisions between economic development and global uncertainty were announced on Thursday, under the leadership of Reserve Bank of India Monetary Policy Committee (MPC), governor Shilakant Das.
The decision came after the conclusion of the three day meeting of the MPC. This is the third repo cut in the last six months by the Reserve Bank of India. Reuters reported that the last time the RBI shifted rates in 2013 at a faster rate to reduce rates.
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The RBI has also changed the monetary policy stance from “neutral” to “accommodative”
The ANI news agency said that the committee will have to make its recommendations within two months of its first meeting.
