Firstpost
  • Home
  • Video Shows
    Vantage Firstpost America Firstpost Africa First Sports
  • World
    US News
  • Explainers
  • News
    India Opinion Cricket Tech Entertainment Sports Health Photostories
  • Asia Cup 2025
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
Trending:
  • Nepal protests
  • Nepal Protests Live
  • Vice-presidential elections
  • iPhone 17
  • IND vs PAK cricket
  • Israel-Hamas war
fp-logo
RBI MPC minutes: Weakening growth prompted central bank governor Shaktikanta Das to go for unconventional 35 bps rate cut
Whatsapp Facebook Twitter
Whatsapp Facebook Twitter
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
  • Home
  • Business
  • RBI MPC minutes: Weakening growth prompted central bank governor Shaktikanta Das to go for unconventional 35 bps rate cut

RBI MPC minutes: Weakening growth prompted central bank governor Shaktikanta Das to go for unconventional 35 bps rate cut

Press Trust of India • August 21, 2019, 19:54:49 IST
Whatsapp Facebook Twitter

Weakening of domestic growth impulses prompted RBI Governor Shaktikanta Das to opt for an unconventional rate cut of 35 basis points to push economic activities early this month, said the central bank on Wednesday

Advertisement
Subscribe Join Us
Add as a preferred source on Google
Prefer
Firstpost
On
Google
RBI MPC minutes: Weakening growth prompted central bank governor Shaktikanta Das to go for unconventional 35 bps rate cut

Mumbai: Weakening of domestic growth impulses prompted RBI Governor Shaktikanta Das to opt for an unconventional rate cut of 35 basis points to push economic activities early this month, said the central bank on Wednesday. Two of his RBI colleagues and an independent member in the rate-setting Monetary Policy Committee (MPC) had also favoured a 35-basis point reduction, against the normal practice of 25 or 50 basis points change, in the third bi-monthly monetary policy of 2019-20. The other two members, both independent, in the six-member MPC had voted for a 25-basis point cut in the policy announced on 7 August. In an unusual move, the Reserve Bank of India (RBI) on 7 August had reduced the benchmark lending rate by 35 basis points to 5.40 percent amid concerns over a slowdown in the economy. Before this, the RBI had reduced the rate thrice, each time by 25 basis points. [caption id=“attachment_5766671” align=“alignleft” width=“380”]File image of RBI governor Shaktikanta Das. Reuters File image of RBI governor Shaktikanta Das. Reuters[/caption] “In view of weakening of domestic growth impulses and unsettled global macroeconomic environment, there is a need to bolster dwindling domestic demand and support investment activity, even as the impact of past three rate cuts is gradually working its way to the real economy,” said the governor, according to the minutes of the MPC released by the RBI on Wednesday. The governor said that with headline inflation projected to remain within the target over the next one year, supporting domestic growth by further reducing interest rates needs to be given the utmost priority. Given the current and evolving inflation and growth scenario at this juncture, it can no longer be a business-as-usual approach, he added. “The economy needs a larger push. I am, therefore, of the view that a reduction in the policy repo rate by conventional 25 bps will be inadequate. On the other hand, a 50 bps rate cut might be excessive and indicate a knee-jerk reaction,” he said. According to the minutes, Das further said “hence, at times it is apposite” to calibrate the size of the conventional rate adjustment, and he voted for reducing the policy repo rate by 35 basis points and for continuing with the accommodative stance of monetary policy. MPC members Bibhu Prasad Kanungo (RBI Deputy Governor), Michael Debabrata Patra (RBI Executive Director) and Ravindra H Dholakia (independent member) also favoured a 35-basis point cut in repo rate. Chetan Ghate and Pami Dua voted for a 25-basis points reduction in the repo or the short-term lending rate. While the RBI has lowered the repo rate by 1.1 percentage points in 2019, the banks are yet to pass on the entire benefit of lower interest rate to borrowers. Governor Das recently asked all banks to link their interest rate with a repo for faster transmission of the central bank’s policy actions.

Tags
RBI Reserve Bank of India NewsTracker Repo rate Monetary Policy Committee Ravindra H Dholakia Shaktikanta Das MPC Chetan Ghate Pami Dua Michael Debabrata Patra RBI MPC minutes Bibhu Prasad Kanungo RBI third bi monthly monetary policy of 2019 20
End of Article
Latest News
Find us on YouTube
Subscribe
End of Article

Impact Shorts

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

The Tata Harrier EV and Mahindra XEV 9e are new electric SUVs in India. The Harrier EV has a modern, familiar design, while the XEV 9e features a bold, striking look. They cater to different preferences: the Harrier EV for subtle elegance and the XEV 9e for expressive ruggedness.

More Impact Shorts

Top Stories

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Top Shows

Vantage Firstpost America Firstpost Africa First Sports
Latest News About Firstpost
Most Searched Categories
  • Web Stories
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Tech/Auto
  • Entertainment
  • IPL 2025
NETWORK18 SITES
  • News18
  • Money Control
  • CNBC TV18
  • Forbes India
  • Advertise with us
  • Sitemap
Firstpost Logo

is on YouTube

Subscribe Now

Copyright @ 2024. Firstpost - All Rights Reserved

About Us Contact Us Privacy Policy Cookie Policy Terms Of Use
Home Video Shorts Live TV