<p>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.</p>.<p>In its meeting concluded on Thursday, the central bank announced a rate cut of 25 basis points to 5.75% from the existing 6%.</p>.<p>The last time repo rate was lower than this was way back in July 2010, when it stood at 5.50%.</p>.<p>The RBI's MPC voted unanimously in favour of a rate cut, with Chetan Ghate and deputy governor Viral V Acharya yet again dissenting in favour of holding on to the rates.</p>.<p>Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.</p>.<p>With this, the reverse repo rate has also been revised to 5.5% from 5.75%.</p>.<p>The central bank has also changed the stance from the existing neutral to accommodative.</p>.<p>However, the bank has lowered the growth of the target to 7.0% from existing 7.2% for FY20.</p>.<p>The central bank also maintained the CPI inflation target at 2.9-3.0% in H1:2019-20.</p>
<p>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.</p>.<p>In its meeting concluded on Thursday, the central bank announced a rate cut of 25 basis points to 5.75% from the existing 6%.</p>.<p>The last time repo rate was lower than this was way back in July 2010, when it stood at 5.50%.</p>.<p>The RBI's MPC voted unanimously in favour of a rate cut, with Chetan Ghate and deputy governor Viral V Acharya yet again dissenting in favour of holding on to the rates.</p>.<p>Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.</p>.<p>With this, the reverse repo rate has also been revised to 5.5% from 5.75%.</p>.<p>The central bank has also changed the stance from the existing neutral to accommodative.</p>.<p>However, the bank has lowered the growth of the target to 7.0% from existing 7.2% for FY20.</p>.<p>The central bank also maintained the CPI inflation target at 2.9-3.0% in H1:2019-20.</p>
