Key interest rates dropped
Analysts’ expectations have come true. The Reserve Bank of India (RBI) has cut a key cut in key interest rates on the decline in inflation. In the current fiscal year, the decision was taken in a review of the sixth bilateral monetary policy. The RBI today announced three-day review decisions.
Four members have responded positively to the reduction of interest rates on monetary policy committee and two opposed. The RBI decision is in line with the government’s views on improving the flow of cash flow into the system in view of the general election.
RBI’s key decision
- Reduction of repo rate from 6.5% to 6.25%
- Reduction of repo rate by 6%, reduction of bank rate to 6.5%
- It is estimated that inflation will be 2.8 per cent in the March quarter
- In the first half of the fiscal year 2019-20 inflation will be 3.2-3.4 years, followed by three months to 3.9%
- GDP growth is projected to be 7.4% in 2019-20 fiscal year