RBI cuts repo rate by 25 basis points, from 5.40% to 5.15%. Reverse repo rate adjusted to 4.90% and bank rate at 5.40 %, accordingly. This is the fifth rate cut by the RBI this year.
RBI Governor Shaktikanta Das said that MPC voted unanimously to reduce the repo rate. He further stated that the Global economy has lost further momentum.
GDP outlook for 2019-20 is revised to 6.1%, from 6.9% in previous Monetary Policy committee meet. For 2020-21, GDP outlook revised to 7.2%.
The government has announced a series of measures including the steepest cut in corporate tax, the rollback of enhanced surcharge on Foreign Portfolio Investors, among others to jump-start growth which hit a six-year low of 5 percent during the first quarter of the current fiscal, a PTI report said.