Mumbai, Apr 4 (UNI): The Reserve Bank of India on Thursday cut the repo rate by 25 basis points to 6 per cent.
Consequently, the reverse repo rate under the Liquidity Adjustment Facility (LAF) stands adjusted to 5.75 per cent, and the Marginal Standing Facility (MSF) rate and the Bank Rate to 6.25 per cent.
Loans are expected to get cheaper with this move by the country's central bank.
Announcing the first bimonthly policy, Governor Shaktikanta Das said that RBI has maintained the policy stance neutral and lowered the retail inflation and GDP forecasts.
The MPC also decided to maintain the neutral monetary policy stance.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.
This is the second consecutive rate cut by the RBI.