Mumbai, Aug 7 (IANS) To shore up slackening growth, the Reserve Bank of India on Wednesday reduced key lending rates for the fourth consecutive time.
Accordingly, the the RBI’s monetary policy committee (MPC) in its third policy review of the current fiscal reduced the repo, or short term lending rate for commercial banks, by 35 basis points to 5.40 per cent from 5.75 per cent.
Consequently, the reverse repo rate was revised to 5.15 per cent, and the marginal standing facility (MSF) rate and the bank rate to 5.65 per cent.
Besides, the MPC maintained its accommodative stance of monetary policy.
“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,” the MPC in a statement said.