RBI cuts repo rate by 25 bps to 5.15%, maintains accommodative stance

Most analysts had expected the RBI to cut interest rates, although they were unsure of the quantum following an unconventional 35 basis-point easing last time.

Extending its rate-cutting spree into a fifth straight monetary policy review, the Reserve Bank of India's Monetary Policy Committee (MPC) on Friday slashed the repo rate by 25 basis points (bps) to 5.15 per cent. 

Repo rate is the rate at which the central bank lends money to the commercial banks, in case of any shortfall in funds. 

Consequently, the reverse repo rate now stands at 4.9 per cent. 

Also, the central bank maintained its accommodative policy stance. 

The six-member committee revised the GDP target for FY20 to 6.1 per cent from 6.9 per cent, earlier. In the