RBI cuts repo rate: Why central bank is in a spot

RBI cuts repo rate: Why central bank is in a spot

Shweta Punj | August 02,2017

With demonetisation and GST, this has been a difficult year for monetary policy committee.

The Reserve Bank of India (RBI) on Wednesday cut its policy repo rate by 25 basis points in its third bi-monthly monetary policy review of 2017-18. The current repo rate now stands at 6 per cent. The central bank also kept the reverse repo rate at 5.75 per cent. The rate cut, first time in 10 months, is expected to make home loans cheaper as interest rates are likely to come down. "The trajectory of inflation in the baseline projection is expected to rise from current lows, the MPC decided to keep the policy stance neutral and to watch incoming data. The MPC remains focused on its commitment to keeping headline inflation close to 4 per cent on a durable basis," RBI said in a note.

Recent Videos

WATCH MORE

POLITICS

 |  2.18 minutes watch

Is PM Modi wrong to allege that Manmohan Singh did not punish Pakistan for 26/11 attacks?

The then government felt the benefits of not attacking Pakistan outweighed those of attacking it.

VARIETY

 |  2.65 minutes watch

Where exactly did Virat Kohli and Anushka Sharma get hitched?

Buonconvento offers the couple some well-deserved privacy.

POLITICS

 |  0.97 minutes watch

Donald Trump recognising Jerusalem as Israel's capital will have a huge blowback

Palestine is definitely not happy with the development.

SCI-TECH

 |  2.35 minutes watch

Smartphones that charge the fastest. Which one should you buy?

Everyone wants a phone which doesn't take hours to charge.

MONEY

 |  1.32 minutes watch

Why PSU banks writing off Rs 55,356 crore corporate debt is worrying

The figure is almost Rs 20,000 crore more than the amount written off this time last year.

POLITICS

 |  2.37 minutes watch

Will Rahul Gandhi answer me? Shehzad Poonawalla asks hard-hitting questions

It's sad the Congress chooses to masquerade the coronation as election for party president.

VOICES

 |  3.15 minutes watch

Schools refusing admission to 4-year-old 'rape victim' is shameful

The mother alleges school authorities leave children unattended and unsupervised.

MONEY

 |  1.5 minutes watch

GDP recovering to 6.3% doesn't mean Indian economy is out of the woods

Slow growth in agriculture and construction, which are key drivers of job growth, remains a concern.

LIFE

 |  1.75 minutes watch

Let's talk about Ivanka Trump's outfits from her visit to Hyderabad

There is a ton of thought that has gone into her fashion choices.

POLITICS

 |  2.65 minutes watch

Why Pervez Musharraf confessing his open support for Lashkar-e-Taiba is troubling

What does it say about Pakistan if the former president thinks cosying up to a terrorist organisation will get him back in power?

POLITICS

 |  3.65 minutes watch

Why India should be concerned with Argentine submarine's disappearance

We are one of the largest navies operating 15 submarines – most of which are nearing or past their shelf life.

POLITICS

 |  2.12 minutes watch

Justice for Hadiya: 3 troubling questions before Supreme Court

Where does the court draw a line that it will not infringe on the liberty of a citizen, especially an Indian woman?

POLITICS

 |  1 minutes watch

How Pakistan military compromised democracy by cutting a deal with fundamentalists

Islamists had held the country to hostage after news emerged of proposed changes to the oath taken by lawmakers.

POLITICS

 |  2.63 minutes watch

Robert Mugabe: Was he a hero or a villain?

While the former president may have ended white rule in Zimbabwe, his dictatorship has seen many incidents of violence.

POLITICS

 |  4.05 minutes watch

BrahMos: What it means for India to possess world's fastest supersonic cruise missile

The missile may have successfully test-fired, but there are still some challenges ahead.

ART & CULTURE

 |  3.72 minutes watch

Padmavati release being delayed is a new low for India

It comes at a cultural inflexion point in our history, where we are looking at revising the past.

POLITICS

 |  3.05 minutes watch

Why BJP trolls are obsessed with Nehru's sex life

It comes from a deep and abiding misunderstanding about the relationship between men and women.

POLITICS

 |  2.23 minutes watch

SC judges bribery case raises some important questions

Even though the matter has been dealt for now, the apex court must set up a mechanism for taking up accountability of judges.

POLITICS

 |  1.72 minutes watch

Is Prince Salman destabilising Saudi Arabia?

Muhammad bin Salman has taken some important decisions since coming to power; we believe there is method to the madness.