Repo Rate Cut 35 bps! Check HIGHLIGHTS of the decision by RBI Governor Shaktikanta Das led MPC

RBI MPC Meeting: The Reserve Bank of India (RBI) has cut the Repo Rates by 0.35 per cent to 5.40 per cent. This is the fourth successive occasion when the central bank has cut Repo Rate - the trend began from February 2019 Monetary Policy Committee meeting. This decision of the four member committee led by Governor Shaktikanta Das is in sync with the industry experts who were expecting anything between 25-50 bps Repo Rate cut in the August 5-7 RBI MPC meeting. The RBi move is expected to make home loans, auto loans and other utility loans cheaper.

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Here are the key highlights of the RBI MPC meeting:

1] Repo Rate cut by 0.35 per cent to 5.4 per cent;

2] RBI sticks to its 'accomodative' stance;

3] FY20 GDP forecast brought down from 7 per cent to 6.9 per cent;

4] NEFT facility to be made available 24 hours from December; 

5] Q1FY20 CPI inflation forecast at 3.6 per cent, Q2FY20 CPI inflation forecast at 3.1 per cent;

6] H1FY20 CPI inflation forecast at 3.5-3.7 per cent;

7] CRR left untouched at 4 per cent;

8] Reverse Reo Rate also cut down by 0.35 per cent to 5.15 per cent;

9] Consumer, personal loan weight risk cut down from 125 per cent to 100 per cent;

10] Banks allowed to lend NBFCs for agricultural loans; and

11] Indian Forex reserve till August 2 is $42,900 Crore.