The Reserve Bank of India has decided to reduce the policy repo rate to 6.25 per cent from 6.5 per cent. Consequently, the standing deposit facility (SDF) rate will be at 6.0 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.5 per cent.
The decision was taken unanimously by the RBI Monetary Policy Committee. The MPC also decided unanimously to continue with the ‘neutral’ stance and to remain unambiguously focused on a durable alignment of inflation within the target, while supporting growth.