The 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.
The 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.
The 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. Sun Pharma, Bajaj Auto, Zeel were major gainers at this time, whereas JSW Steel, Reliance and Hindalco were among major losers