RBI reduces repo rate by 40 basis points, now stands at 4%

In a bid to boost the demand amid the economic crisis that stares at India as a result of the coronavirus pandemic, the Reserve Bank of India Governor Shaktikanta Das today announced a 40% reduction in repo rate, bringing it down from 4.4% to 4%. The RBI also reduced reverse repo rate to 3.35%. MPC, which met off-cycle, voted in the ratio of 5:1 in favour of the repo rate cut. Das said normal monsoons bring a ray of hope.