In a bid to boost sluggish economy before elections, the RBI Thursday cut interest rate by 25 basis points for the second time in as many months, a move that may translate into lower EMIs for home and other loans.
The six-member Monetary Policy Committee (MPC), headed by RBI Govenor Shaktikanta Das, cut the repo rate to one-year low of 6 per cent and reverse repo rate to 5.75 per cent on prospects of benign inflation.
While four of the six members voted in favour of the rate cut, two of them were in favour of status quo.
RBI Deputy Governor Viral Acharya and MPC member Chetan Ghate voted for a status quo in rates. Five of six members voted to keep the stance unchanged at Neutral, while committee member Ravindra Dholakia voted to change the stance to accommodative.
The apex bank cut benchmark interest rate by 0.25 per cent to 6 per cent.
This is also the first back-to-back rate cut since the MPC was formed in late 2016.
Source : Business Standard