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Published on 22/05/2020 10:17:19 AM | Source: Reuters

RBI unexpectedly slashes repo rate by 40 bps

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MUMBAI - The Reserve Bank of India on Friday unexpectedly slashed its key policy rate for a second time this year, in a move to counter the economic fallout from an ongoing nationwide lockdown to contain the spread of the novel coronavirus.

It cut the repo rate by 40 basis points to 4%. The reverse repo rate was also reduced by 40 basis points to 3.35%.

In a video conference, RBI Governor Shaktikanta Das said the central bank's Monetary Policy Committee (MPC) had voted to maintain its "accommodative" stance.

(Reporting by Swati Bhat and Chris Thomas; Writing by Euan Rocha; Editing by Shri Navaratnam)