MUMBAI - The Reserve Bank of India (RBI) cut its benchmark interest rate by 25 basis points on Thursday, in a widely expected move to boost the economy, while keeping its monetary policy stance "neutral" despite subdued inflation.
The six-member monetary policy committee (MPC) cut the repo rate to 6.00 percent as predicted by 57 of 67 analysts polled by Reuters last week. The reverse repo rate was reduced to 5.75 percent.
Four out of six MPC members voted for a 25 basis points cut, while two called for it to remain unchanged. Five of them called for the policy stance to remain "neutral" while one MPC member voted for it to be changed to "accommodative".