RBI cuts Repo Rate by 25 Basis Points

Published on October 04, 2019
Current context: Reserve Bank of India has cut the repo rate by 25 basis points in its fourth bi-monthly policy on 4th October 2019.
RBI cuts Repo Rate by 25 Basis Points
  • The cut has been made to 5.15% from 5.40% earlier, while the reverse repo rate has been adjusted to 4.90% and bank rate at 5.40 %.
  • All the six members of the MPC voted in favour of a rate cut, which is the fifth rate cut in 2019. 
  • RBI continues with its accommodative monetary stance to revive economic growth ensuring inflation remains within the target range.
  • RBI has revised the GDP outlook from 6.9% in previous Monetary Policy committee meet in August to 6.1% for 2019-20.
  • RBI has revised the GDP outlook to 7.2% for 2020-21.
  • On 1st October, the foreign exchange reserve stood at $434.6 billion which shows up of $21.7 billion over March-end 2019.
  • RBI retains retail inflation projection at 3.5-3.7% for the second half of the year 2019.

Question: 

Q.1 RBI has recently cut the repo rate by 25 basis points, which is the _____ rate cut in 2019?
a. Forth
b. Fifth
c. Sixth
d. Seventh

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