The Reserve Bank of India (RBI) lowered its key lending rate or the repo rate by 0.25% to 5.15% for the fifth time in 2019, in its fourth bi-monthly policy review. The GDP growth forecast for the current fiscal has lowered to 6.1% from 6.9 % earlier.
The six-member Monetary Policy Committee (MPC) announced this after a three-day meeting. The rate cut comes at a time when the Indian economy is facing its worst slowdown since the dip in economic activity following the global financial crisis of 2008-09.
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RBI Governor Shaktikanta Das had earlier hinted that inflation provides room for further monetary policy easing while space for fiscal space is limited.
Inflation in August accelerated to a 10-month high but remained well below the central bank’s medium-term target of 4% for a 13th straight month.
Meanwhile, Sensex today opened with a gain of over 250 points to trade at 38,350 and Rupee inches 10 paise against the USD to trade at 70.78.