RBI’s Monetary Policy Committee (MPC) has slashed the repo rate by 25 bps in
its sixth bi-monthly monetary policy statement for 2018-19. The three-day
policy review meeting by the MPC started in Mumbai on Tuesday, headed by newly
appointed RBI Governor Shri Shaktikanta Das.
MPC has cut the key policy rate to 6.25% from 6.5%. As a result, the reverse
repo rate under the Liquidity adjustment facility (LAF) stands adjusted to
6-pc, and the marginal standing facility rate and the Bank Rate to 6.5-pc. The Monetary
committee also determined to change the monetary policy standpoint from
calibrated tightening to neutral.
Sensex and Nifty reduced their early gains after the RBI announced a cut of the
repo rate to 6.25 per cent. The Sensex which jumped 108 points to 37084-level
in the morning session, has reversed its gains in mid-market and trade lower at
36,925-level down by 49 points. Similarly,
the Nifty which gained in the morning 29 points to 37084-mark, trimmed its
gains by falling 12 points down at 11050-marks at 12.50 pm Thursday.
Pharma, Bajaj Auto, Zeel were major gainers at this time, whereas JSW Steel, Reliance
and Hindalco were among major losers