RBI cuts interest rate by 25 bps

  1. The Reserve Bank of India(RBI) Monetary Policy Committee has unanimously cut the repo rate by 25 basis points from 6% to 5.75%. Repo stands for ‘Repurchasing Option’. Repo rate refers to the rate at which commercial banks borrow money from the RBI.
  2. The reverse repo rate was also lowered to 5.50% from 5.75%.The reverse repo rate is the rate at which the central bank borrows money from commercial banks.
  3. The RBI has changed the monetary policy stance from neutral to accommodative.The change in stance to accommodative means there is a possibility of further monetary easing in the months ahead.
  4. The RBI has also lowered India’s Gross Domestic Product(GDP) growth estimate to 7% for the year 2019-20 from 7.2% that it forecast in April,2019.
  5. The GDP growth estimate was lowered due to weak domestic investment activity and slowdown in exports.Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period.
  6. 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.

Cisco 300-085 Certification Braindumps : Implementing Cisco Collaboration Application v1.0 (CAPPS)

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