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RBI lowers inflation, GDP growth forecast: Key takeaways from policy meet

GDP growth rate for FY 2020 has been lowered to 7.2 per cent in benign inflation scenario.

RBI Governor Shaktikanta Das
RBI Governor Shaktikanta Das

In line with expectations, the Reserve Bank of India (RBI) decided to lower the repo rate by a 25 basis points (bps) to 6 per cent in the first bi-monthly monetary policy meet of the financial year (FY) 2019-20.  Consequently, the reverse repo rate under the Liquidity adjustment facility (LAF) was adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate now stand at 6.25 per cent. The policy stance has been maintained neutral with 5:1 vote.  Dr. Chetan Ghate, Dr. Pami Dua, Dr. Michael Debabrata Patra, Dr. Viral V. Acharya and ...