RBI cuts repo rate by 75 basis points to 4.40%

RBI cuts repo rate by 75 basis points to 4.40%

In the wake of the coronavirus pandemic, the Reserve Bank of India (RBI) on March 27 cut the repo rate by 75 basis points to 4.40 percent versus 5.15% earlier.

The monetary policy committee advanced its meet to March 24-26-27 and voted by 4:2 majority to reduce the policy repo rate.

One bps is one-hundredth of a percentage point.

The Finance Minister Nirmala Sitharaman announced on March 26 a Rs 1.7-lakh crore stimulus package with a slew of measures under the Prime Minister Garib Kalyan scheme.

The RBI was expected to cut the repo rate anywhere between 25-50 basis points due to the ongoing economic slowdown amid a 21-day lock-down to counter the COVID-19 outbreak.