RBI cuts repo rate by 0.25 per cent to 6.25 per cent, lowest in last six years

Reserve Bank of India on Tuesday cut the repo rate by 0.25 percent to 6.25 percent, lowest in last six years. In first monetary policy by new Governor Urjit Patel, RBI adjusted the reverse repo rate under LAF to 5.75 %. 

The economist and financial pundits had strongly anticipated interest rate cuts as a favourable monetary policy tool to curb retail inflation and the MPC has lived up to its expectation in announcing rational rate cuts. As a result, within a minute of announcemnet Sensex registered a gain of 100 points. 

Specuations regarding a divergent among members of the committee were put to rest as all the six members of Monetary Policy Committee voting in favor of rate cut.

Here are the live updates: 

#High-level inter-agency panel to be set up to review security of treasure in transit to beef up security #currency notes/coins.

#RBI in consultation with government, to allow startups to raise ECB of up to USD 3 million per fiscal

#Cut in small saving rates should encourage banks to reduce lending rates: RBI

#It is possible that the IMF meet this week could further downgrade global growth, would be surprised if it doesn't: RBI Guv Urjit Patel

#MPC members will enhance process and quality of policy making. We can expect further slowdown in global growth: RBI Guv Urjit Patel

#For the first time in a long time, weak global demand is going to bring down trade volume: RBI chief Urjit Pate

#Decision of MPC consistent with accommodative stance of the monetary policy: RBI

#Retail inflation to be 5 per cent by March 2017 with upside risk: RBI

#Reverse repo rate under the LAF stands adjusted to 5.75 %, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 %: RBI

#All six members of Monetary Policy Committee voted in favour of rate cut

#RBI policy effect: Sensex rises more than 100 points at 2.31 p.m.

#RBI cuts repo rate by 0.25 percent to 6.25 percent