The Reserve Bank of India (RBI) reduced the repo rate or the rate at which it lends to banks by 35 basis points to 5.4 percent in the August policy review, citing downside risks to economic growth.

The reverse repo rate has been revised to 5.15 percent while the marginal standing facility rate and the bank rate to 5.65 percent. The Monetary Policy Committee (MPC) has maintained an accommodative stance.

This is the fourth consecutive rate cut since February. The central bank has lowered the key policy rate by a cumulative 110 basis points in the current easing cycle. The move was in line with market expectations though there were hopes that the RBI may deliver a steeper cut to boost growth.

The Reserve Bank of India (RBI) reduced the repo rate or the rate at which it lends to banks by 35 basis points to 5.4 percent in the August policy review, citing downside risks to economic growth.

The reverse repo rate has been revised to 5.15 percent while the marginal standing facility rate and the bank rate to 5.65 percent. The Monetary Policy Committee (MPC) has maintained an accommodative stance.

This is the fourth consecutive rate cut since February. The central bank has lowered the key policy rate by a cumulative 110 basis points in the current easing cycle. The move was in line with market expectations though there were hopes that the RBI may deliver a steeper cut to boost growth.