RBI MPC minutes: Slowing growth, tamed inflation prompted rate cut

The Reserve Bank of India cut its policy rate by 25 basis points on June 6, bringing the repo rate to 5.75 per cent

Members of the monetary policy committee (MPC) were concerned about slowing growth, while being sure about inflation remaining under control in the coming year, which opened up room for a cut.

The Reserve Bank of India (RBI) cut its policy rate by 25 basis points on June 6, bringing the repo rate to 5.75 per cent, and the MPC also voted unanimously to the policy stance to “accommodative”, from “neutral”.

Minutes of the MPC meetings held on June 3, 4 and 6 showed that the members felt a rate cut, with a change in stance, was necessary for various reasons,