Full text: RBI cuts repo rate to 6%, cuts GDP forecast for FY20 to 7.2%

RBI cut its benchmark interest rate by 25 basis points, in a widely expected move to boost the economy

The Reserve Bank of India cut the key policy rate by 25 basis points to 6 per cent in order to boost private investments and support domestic growth. Four out of six MPC members voted for a 25 basis points cut, while two called for it to remain unchanged. Five of them called for the policy stance to remain “neutral” while one MPC member voted for it to be changed to “accommodative”.

GDP growth for 2019-20 is projected at 7.2 per cent, in the range of 6.8-7.1 per cent in H1FY20 and 7.3-7.4 per cent in H2 with risks