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RBI Cuts Repo Rate by 25 bps to 5.75%:- The Reserve Bank of India (RBI) monetary policy committee today unanimously cut repo rate. It is the rate at which it lends to banks. The repo rate is cut by 25 basis points from 6% to 5.75%. The monetary policy of the bank too has been changed from neutral to accommodative. The reverse repo rate along with the bank rate have been adjusted at 5.50 and 6% respectively. The Gross Domestic Product (GDP) growth forecast for the financial year 2019-20 has been lowered to 7% from 7.2% in the earlier projection.
The inflation projection has been raised to 3-3.1% from April-September and 3.4-3.7% from the second half of this year. On NEFT and RTGS transactions, RBI decided to do away the levied charges. The banks have been asked to pass the benefit to all the customers. After RBI Governor Shaktikanta Das took charge, this is the third time interest rates have come down. Shaktikanta Das also heads the Monetary Policy Committee.