RBI reduces key lending rate by 25 bps

RBI lowers repo rate by 25 basis points to 6% – the second cut in two months

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

The Monetary Policy Committee (MPC) also chose to maintain the neutral monetary policy stance.

According to Mint, the 25 bps reduction in repo rate between June 30, 2017, and end-December the same year had prompted a 23 bps cut in MCLR.

Also, existing home loan customers may have to wait awhile to see an impact on their EMIs because of the reset date factor.

Consequently, the reverse repo rate stands at 5.75 per cent. Pami Dua, Ravindra Dholakia, Michael Debabrata Patra and Shaktikanta Das voted in favour of the decision to reduce the policy repo rate. Crude oil prices have also risen to about $70 per barrel on production cuts by OPEC and Russian Federation. This is also the first back-to-back rate cut since the Monetary Policy Comittee (MPC) was formed in late 2016.

It expects CPI inflation at 2.4 per cent in January to March and 3.5 per cent to 3.8 per cent in the second half of the fiscal.

RBI Governor Shaktikanta Das said export growth remained weak in January and February 2019.

The last time repo rate was at 6 per cent was in April 2018.

With inflation well below the RBI's mandate of 4 per cent and a push towards the economic activities amid fears of global economic slowdown supported the RBI's move. "You can't operate such a large economy on the basis of data, which nobody knows is correct or not", Rajan had said in a recent interview with Moneycontrol.

"Higher crude oil prices, volatility in worldwide financial markets, the risk of a sudden reversal in the prices of perishable food items, and fiscal slippages are, however, upside risks to the inflation trajectory", the RBI said.

While projecting the gross domestic product (GDP) growth for 2019-20 at 7.2 per cent, the RBI revised downward retail inflation estimate to 2.4 per cent in Q4 FY-19.

GDP (gross domestic product) growth for 2019-20 is projected at 7.2 per cent - in the range of 6.8-7.1 per cent in H1:2019-20 and 7.3-7.4 per cent in H2 - with risks evenly balanced. "Taking into consideration, higher financial flows to the commercial sector, resilience in private consumption, increase in disposable incomes of households due to tax benefits and optimistic business expectations, growth projection has been lower", it said.

Related News:

  • Republican Rep. Matt Gaetz Announces

    Republican Rep. Matt Gaetz Announces "Green Real Deal"

    But Gaetz has not always championed action on climate change , having sponsored a bill in the last Congress to abolish the EPA. He also claimed that regulations were strangling green innovation.
    Celine Dion feels empowered by late husband Rene Angelil

    Celine Dion feels empowered by late husband Rene Angelil

    Dion has spent the last eight years performing at Caesar's Palace in Las Vegas, but her residency there ends in June. In her case, she said it was the death of her husband and longtime mentor Rene Angelil. "I'm in love.
    Trump mistakenly says his father was born in Germany

    Trump mistakenly says his father was born in Germany

    My father was German and born in a very wonderful place in Germany , so I have a great feeling for Germany ". Trump went on to say: "I respect the leaders of those countries.
  • Accused in New Zealand terror attack to face 50 murder charges

    Accused in New Zealand terror attack to face 50 murder charges

    He is due back in court on Friday. " As the case is before the court, the police are not in a position to comment further ". The new laws would ban the sale of military-style semi-automatic weapons, the same type of weapon used by the gunman.
    USA  halts F-35 jets delivery to Turkey

    USA halts F-35 jets delivery to Turkey

    On Monday, the Pentagon issued a statement affirming, "Turkey's acquisition of the S-400 is unacceptable". The S-400 is known as Russia's most advanced long-range surface-to-air missile defence system.
    'Representation matters.' Tributes as Chicago elects first black woman as mayor

    'Representation matters.' Tributes as Chicago elects first black woman as mayor

    Now, it appears that its power there is waning also. - Chicago voters on Tuesday chose Lori Lightfoot to be the city's next mayor. That race, and Burke's fall from power, are all signals of a decline in the old-guard Democratic Machine on the City Council.
  • KP Boateng hits out at Leonardo Bonucci over Moise Kean racism comments

    KP Boateng hits out at Leonardo Bonucci over Moise Kean racism comments

    Juventus boss Massimiliano Allegri shared the same view, saying the 19-year-old should take a share of the blame. An announcement over the stadium speaker warned fans that the game could be suspended if the chanting persisted.
    ‘You can reach 1,000 goals’, Pele tells Mbappe

    ‘You can reach 1,000 goals’, Pele tells Mbappe

    Pele said Mbappe and his French teammates reminded him of Brazil's great national teams from the 1960's. Mbappe was also was named the World Cup's best young player in Russian Federation , like Pele in 1958.

    Curiosity Rover Detected Methane on Mars in 2013, a New Analysis Confirms

    In 2004, the Mars Express orbiter detected faint traces of methane in the Martian atmosphere, not long after it arrived. Europe's Mars Express probe measured 15.5 parts per billion in the atmosphere above the Gale Crater on June 16, 2013.
  • Teen claims to be boy who went missing in 2011: Police report

    Teen claims to be boy who went missing in 2011: Police report

    A DNA test to confirm if the teen is Timmothy will take about 24 hours, WCPO reported , citing the Aurora Police Department . The National Center for Missing and Exploited Children has said that Timmothy was last seen at a water park in Wisconsin.
    Premier League run-in for Champions League chasing sides

    Premier League run-in for Champions League chasing sides

    Pep Guardiola's side still have to play both Tottenham at home and Manchester United away in their remaining fixtures. Their home form is exceptional but away from home they are poor.
    FAA says glitch fixed, US airlines back up

    FAA says glitch fixed, US airlines back up

    The problem is with a system called Aerodata that is used in flight planning to track weight and balance, reports indicate. Southwest had 585 delays at 9:06 a.m.in NY , according to flight tracker website FlightAware .com, while JetBlue had 199.

Most liked

Google celebrates Gmail's 15th anniversary with smart updates
Google first debuted Smart Compose in Gmail with the Pixel 3 a year ago and recently expanded it to include some Android devices. The update to Smart Compose also includes new support for Spanish, French, Italian and Portuguese.

Game of Thrones Season 8 premiere: Stars on playing strong female characters
The couple, who have two children together, held hands as they posed for pictures ahead of the screening at Radio City Music Hall. When, we don't know but she just spilled some details on US TV show Access recently.

Prince Harry rails against 'addictive social media'
Meanwhile, the most-followed Instagram account in the world is now Instagram itself, followed by footballer Cristiano Ronaldo. Step one: Find pictures of both Prince Harry (left) and Meghan Markle (right) when they , themselves, were babies.

Arsenal line up surprise swoop for Premier League winger
He is working hard and showing us his quality". "I hope Aaron Ramsey's injury is not serious, the doctor is thinking it's a small injury".

Powerbeats Pro Truly Wireless Headphones Getting Advertised Before an Actual Announcement
What's interesting is that the PowerBeats Pro uses Apple's new H1 chip which is also found on the latest 2nd gen AirPods. I've said before that AirPods are about the only non-over- or on-ear headphones they stay in my grappling savaged ears.

Millions of Facebook records found on Amazon cloud servers
Upguard also found a smaller data set in a separate AWS S3 instance which it says was a back up from the " At the Pool " app. Once the data is out of Facebook's hands, the developers can do whatever they want with it.

Britney Spears says she's taking a little 'me time'
While this news may come as a shock to fans, the report claims Brit has been "distraught" over her father's health issues. TMZ reported Spears' father, Jamie , had two surgeries to correct major issues with his intestines and colon.

Turkish FM says no turning back from Russian Federation arms deal
Defense analysts say that the Russian-made system could allow Moscow to gather critical data on the stealth fighter. Turkey could face sanctions under a U.S. law known as Countering America's Adversaries Through Sanctions Act.

WaPo: Saudis Giving Money, Lavish Homes to Khashoggi Children
That estimate is based on similar deals made in the past which involved payments by the Saudi government, according to the source. Blood money paid to relatives of victims is a legal action under Sharia law where an accused pays to avoid a death penalty.

India put Int'l Space Station at risk by shooting down satellite
The task of tracking potentially risky debris is mostly left to NASA, which has struggled to catch up with the growing problem. With 830 satellites, USA leads the world in the number of satellites, followed by China with 280 satellites.

Half of Huawei flagships could be foldable devices by 2021
The P30 series was globally launched last week in Paris at Huawei's flagship event by the company's chief executive, Richard Yu. The Huawei P30 Pro is powered by the in-house HiSilicon 7nm Kirin 980 chipset and has an in-display fingerprint sensor.

Apple to release three OLED iPhones in 2020
It is now seeking as much as $990 million in financing to build a new OLED facility in China dedicated to smartphone panels. Last year's iPhones consisted of two OLED models-the XS and XS Max-and the cheaper iPhone XR , which sports an LCD panel.

Trump says '100%' ready to shut down Mexico border
Many were being diverted from official ports, leading to slowdowns in processing arriving visitors and commercial vehicles. Long lines have formed at the border since Thursday, with wait times of up to eight hours for those trying to cross.

WhatsApp now stops strangers from adding you to groups
People will now have the option to choose from three options in their settings from " nobody , ' 'my contacts , ' or 'everyone ". The invite system was long-awaited as users will now be able to decline being added to groups they do not wish to join.

Harry and Meghan launch their own Instagram account and share unseen photos
Upon joining the social media giant, the pair posted a message to all their fans as they thanked for their support. The account officially launched on Tuesday, and it already has a rapidly growing audience of 324,000 followers.