To shore up slackening growth,
the Reserve Bank of India on Wednesday reduced key lending rates for the
fourth consecutive time.
Accordingly, the the RBI's monetary
policy committee (MPC) in its third policy review of the current fiscal
reduced the repo, or short term lending rate for commercial banks, by 35
basis points to 5.40 per cent from 5.75 per cent.
the reverse repo rate was revised to 5.15 per cent, and the marginal
standing facility (MSF) rate and the bank rate to 5.65 per cent.
Besides, the MPC maintained its accommodative stance of monetary policy.
decisions are in consonance with the objective of achieving the
medium-term target for consumer price index (CPI) inflation of 4 per
cent within a band of +/- 2 per cent, while supporting growth," the MPC
in a statement said.