The RBI has released the minutes of the monetary policy committee (MPC) meeting.
During the meeting,RBI governor said that RBI had to cut the repo rate by an unconventional 35 basis points to 5.4% in view of weakening of domestic growth and unstable global macroeconomic environment.
Further,the governor said that the rate cut was given the utmost priority as inflation is projected to remain within the target over the next one-year.
The governor has also said that the transmission of repo rate cut by the banks has been inadequate.However,it is expected to improve in the coming months.
The Monetary Policy Committee(MPC) is a committee of the Reserve Bank of India.It is headed by its Governor which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level i.e.inflation targeting.