Here are five key takeaways from RBI's June policy

The Reserve Bank, in its second bi-monthly monetary policy review, announced the third consecutive rate cut, dragging the repo rate to its lowest level since July 2010.

Here are five key takeaways from the policy.

1) Repo Rate: The policy repo rate has been reduced under the liquidity adjustment facility (LAF) by 25 basis points to 5.75% from 6.0%. The rate at which RBI lends these finances to commercial banks is called the repo rate. The MPC voted unanimously in favour of the rate cut.

2) Reverse Repo Rate: The reverse repo rate under the LAF stands adjusted to 5.50%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0%. Reverse Repo rate is the rate at which Reserve Bank of India borrows funds from all the other commercial banks in the country.

3) Policy Stance: In a unanimous decision, the MPC also decided to change the stance of monetary policy from neutral to accommodative, after the economy grew at its slowest in over four years.

4) Inflation: Raises retail inflation forecast for Apr-Sept to 3-3.1 pc and 3.4-3.7 pc in Oct-Mar. The RBI decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

5) Growth Estimates: GDP growth forecast has been lowered from 7.2% to 7% for FY20 due to slowdown in domestic activities and escalation in global trade war.