 "rbi, reserve bank of india")
The Reserve Bank of India cut the policy repo rate to 5.75 per cent last week, and changed its policy stance to “accommodative,” meaning that a rate hike is off the table.
The previous year FY19 saw growth falling and subdued inflation. The RBI responded with a gradual tightening of the monetary policy in the first three quarters, when oil prices were rising. It then resorted to monetary easing — three reduction in policy rates in a row (Chart 1).
The RBI hopes that this would provide the much-needed boost to aggregate demand and private investment, and bring growth back
