RBI cut lending rate citing steady inflation, hoped to boost investment

Under the chairmanship of Governor Shaktikanta Das, the committee voted four against two for a 25 basis point repo rate cut

The Reserve Bank of India (RBI) in its February monetary policy moved to “correct the past inaction” on interest rates, one of the highest in the world after discounting inflation, so that private investment and employment get a boost, according to the minutes released on Thursday.

In earlier policies, except Ravindra Dholakia, no other monetary policy committee (MPC) member thought it fit to cut rates even when inflation was well below the target of 4 per cent. The RBI had in the October policy even changed the stance to “calibrated tightening” from “neutral” earlier.

Under the chairmanship of Governor Shaktikanta