Mumbai, February 7: The Reserve Bank of India (RBI) on Thursday cut the repo rate by 25 basis points to 6.25 per cent in its monetary policy. Consequently, the reverse repo rate came down to 6 per cent. The reduction in repo rate comes as a relief as it is set to bring down home loan rates. The RBI also changed its policy stance to 'neutral' from 'calibrated tightening' on low inflation footprint. The RBI monetary policy estimated the GDP growth for 2018-19 at 7.2 per cent.
Ahead of the RBI policy today, the BSE benchmark Sensex had jumped over 150 points in early trade on sustained buying by domestic and foreign institutional investors.
Meanwhile, the central bank said that it has received a proposal for an umbrella organisation for urban cooperative banks. RBI has decided on this positively. A decision on the specifics of the umbrella organisation proposal will be taken shortly.