Rate Cuts Part Of RBI Effort To Prop Up Growth: MPC

The 50 bps repo rate cut and 100 bps reduction in cash reserve ratio announced on June 6 are part of the Reserve Bank's effort at propping growth that has lost some momentum due to the ongoing trade war and aided by the six-member panel's unanimous benign outlook on inflation on falling food prices and forecast for a normal monsoon season, show the minutes of June 4-6 MPC meeting released by RBI on Friday.

- ENS ECONOMIC BUREAU @ Mumbai

The 50 bps rate cut was the only time it did in recent years after the 75 bps reduction in May 2020. During Covid pandemic, CRR was slashed to 3%.

The current package is aimed at offering stability and to aid growth in near term. The MPC changed the stance to neutral from accommodative, announced in the April policy.