Mumbai, August 7: The Monetary Policy Committee, led by Reserve Bank of India Governor Shaktikanta Das has cut the Repo Rate by 35 basis points to 5.40 percent and Reverse Repo Rate at 5.15 percent today. This announcement means that loans will become cheaper. The RBI has also lowered the GDP growth rate for 2019-20 lower to 6.9%, as compared to an earlier estimate of 7 percent.

Today's policy review comes after three cuts of 25 basis points (0.25 percentage point) each in the repo rate, so far this year. The reduction in the key lending rates also marks the longest stretch of rate cuts in over a decade, as per reports. RBI May Cut Repo Rate by 25 Bps in Upcoming Monetary Policy: Analysts.

According to a survey done by Reuters, the majority of the economists had expected RBI to slash the benchmark repo rate by 25 basis points.

Check ANI tweet:

Reportedly, the things that have shaped the decision of the monetary policy committee (MPC) include- economic slowdown, low inflation and geopolitical tensions.

The stock market has been very volatile throughout the day. The Sensex was at 37,038, up 62.13 points, and Nifty at 10,961, during the RBI announcement of the Monetary Policy on Wednesday.

(The above story first appeared on LatestLY on Aug 07, 2019 11:54 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).