Minutes of the Monetary Policy Meeting October
In a much-needed booster shot to the economy, RBI governor Raghuram Rajan on Tuesday cut the repo rate by 50 basis points, front loading policy action in view of contained inflationary pressures and weak economic activity. The Reserve Bank of India (RBI) on Tuesday cut its repo rate by 50 basis points to 6.75%, while keeping the cash reserve ratio (CRR) unchanged at 4%. While the Reserve Bank's stance will continue to be accommodative, the focus of monetary action for the near term will shift to working with the Government to ensure that impediments to banks passing on the bulk of the cumulative 125 basis points cut in the policy rate are removed. The Reserve Bank will continue to be vigilant for signs that monetary policy adjustments are needed to keep the economy on the target disinflationary path.
