RBI: Repo rate reduced by 25 basis points
Mumbai, Feb 7: The Reserve Bank of India (RBI) reduced Repo rate by 25 basis points, now at 6.25 from 6.5 per cent on the basis of an assessment of the current and evolving macroeconomic situation.
Consequently, the reverse repo rate under the LAF stands adjusted to 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.5 per cent.
The MPC also decided to change the monetary policy stance from calibrated tightening to neutral.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.