What is so sacrosanct about 25 bps cut, asks RBI Guv

What is so sacrosanct about 25 basis point cut or the multiples of that, Governor Shaktikanta Das asked after the Reserve Bank of India's MPC give an unconventional 35 bps cut in repo rate on Wednesday,

This is the fourth repo cut since Das took the helm early this year.

Das said 35 bps was the need of the hour given that the global economic slowdown was impacting India, 50 bps would have been "excessive". He, therefore, decided to go with 35 bps, which was also supported by three other members in the monetary policy committee.

This is the first time in the world that any central bank has given a 35 bps. They have always gone with 25 bps or the multiples of that.

With that he also emphasised on RBI's stance, which, he said continued to be "accommodative", meaning thereby any rate hike was off the table in the near future.

To a question on whether he believed that the economic slowdown was more entrenched, the governor said, in his view, it was only cyclical and not structural.

He, however, said there was room for certain structural reforms, which the government should undertake in the wake of slowing rural and urban consumer demand as reflected in automobile sales among others