Points to Remember:
- The RBI cut benchmark interest rates for the fifth time this year to spur growth after the economy expanded by 5% in Q1.
- The repo rate was reduced by 25 bps to 5.15%, taking the cumulative cuts so far this year to 135 bps.
- A repo rate cut allows banks to reduce interest rates for consumers and lowers equal monthly instalments on home loans, car loans and personal loans.
Rates at a Glance:
- Policy Repo Rate: 5.15%
- Reverse Repo Rate: 4.90%
- Marginal Standing Facility Rate: 5.40%
- Bank Rate: 5.40%
- CRR: 4%
- SLR: 18.75%
Important Possible questions based on above News:
- As per the Fourth Bi-monthly Monetary Policy Statement, 2019-20 by RBI, What is the new Repo Rate? 5.15%
- What is the difference in rates(in BPS) between Policy Repo Rate & MSF? 25 Basis points