Current Affairs

RBI cuts Repo Rate by 25 Basis Points

Current context: Reserve Bank of India has cut the repo rate by 25 basis points in its fourth bi-monthly policy on 4th October 2019.
RBI cuts Repo Rate by 25 Basis Points
  • The cut has been made to 5.15% from 5.40% earlier, while the reverse repo rate has been adjusted to 4.90% and bank rate at 5.40 %.
  • All the six members of the MPC voted in favour of a rate cut, which is the fifth rate cut in 2019. 
  • RBI continues with its accommodative monetary stance to revive economic growth ensuring inflation remains within the target range.
  • RBI has revised the GDP outlook from 6.9% in previous Monetary Policy committee meet in August to 6.1% for 2019-20.
  • RBI has revised the GDP outlook to 7.2% for 2020-21.
  • On 1st October, the foreign exchange reserve stood at $434.6 billion which shows up of $21.7 billion over March-end 2019.
  • RBI retains retail inflation projection at 3.5-3.7% for the second half of the year 2019.

Question: 

Q.1 RBI has recently cut the repo rate by 25 basis points, which is the _____ rate cut in 2019?
a. Forth
b. Fifth
c. Sixth
d. Seventh
RBI cuts Repo Rate by 25 Basis Points RBI cuts Repo Rate by 25 Basis Points Reviewed by Neha Verma on October 04, 2019 Rating: 5

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