With the Monetary Policy Committee (MPC) unanimously maintaining a "neutral" stance, the Reserve Bank of India (RBI) on Friday announced that it cut the key repo rate for the first time in almost five years in a bid to energise a slowing economy.
This is in line with the outlook by the apex bank which sees the slowest growth trajectory for the current fiscal in nearly four years. The RBI also estimated India’s GDP growth in the upcoming fiscal year to be 6.7 per cent.
The latest MPC meeting, the three-day summit that began on Wednesday, saw RBI governor Sanjay Malhotra chairing for the first time.
Opining that inflation targeting served the Indian economy well, Malhotra stressed how average inflation was lower since the introduction of the monetary policy framework.
[This is a developing story and is being updated.]
