The Reserve Bank of India on Thursday reduced the repo rate by 0.25% while increasing the reverse repo by the same margin.
The RBI’s Monetary Policy Committee voted in favour of a rate cut in 4:2 vote.
However, the markets have shown a disappointing reaction to the MPC decision.
The RBI also maintained its outlook stance neutral while it lowered the growth of the target to 7.2% from existing 7.4% for FY20.
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