The Reserve Bank of India (RBI) on Wednesday (7 August) slashed the repo rate by 35 basis points (bps) to 5.4 per cent, Mint has reported.
The monitory policy committee (MBC) in its third biannual policy review voted in favour of the rate cut with four members favouring a 35 bps rate cut which the rest two advocating a 25 bps cut.
This is the fourth consecutive rate cut by the Central Bank since Shaktikanta Das took over as the Governor in December 2018.
The RBI had earlier cut rates by 25 bps in February, April and June and the total rate cut tally since February stands at 110 bps.
“The MPC felt it was prudent to remain accommodative. Understand that economic slowdown is cyclical and not deep structural slowdown”, Shaktikanta Das was quoted as saying following the rate cut.
The Sensex reacted positively to the rate cut news by gaining 120 points for a few minutes.