RBI cuts RR by 25bps

New Delhi Aug 2: A decision was taken today. The Reserve bank of India today has cut the short-term lending rate, or repo rate, by 25 basis points to 6 per cent.

RBI governor Urjit Patel has announced this decision today.
The third bimonthly policy review took place started yesterday.The decision was taken after 4 members of 6 members of MPC voted for a rate cut.

The central bank has also adjusted the following rates



* The reverse repo rate has been adjusted to 5.75 per cent.
* The marginal standing facility (MSF) rate and the bank rate to 6.25 per cent.

Experts say that the bank has cut the rate because of lower inflation and soon the banks may cut the interest rates on loans.