Why RBI slashed repo rate by 35 bps instead of 25 or 50 bps: Top highlights

Various high frequency indicators, the RBI said, suggested weakening of domestic and external demand conditions.

Adopting a middle path, the six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Wednesday decided to slash the repo rate by 35 basis points (bps) to 5.4 per cent. Most analysts were rooting for a 25 bps rate cut. Global brokerage firm Bank of America Merrill Lynch (BofA-ML), however, had projected the central bank to slash rates by 35 bps.
 

Here's why the central bank opted for a 35 bps rate cut and other top highlights from the latest RBI policy meet -
 

Quantum of rate cut a balanced call: In view of the current