Explained: Why has RBI cut lending rate by 35 bps? Why has GDP growth been revised downwards? | Explained News, The Indian Express

Explained: Why has RBI cut lending rate by 35 bps? Why has GDP growth been revised downwards? | Explained News, The Indian Express

Written by Sandeep Singh |New Delhi |Updated: August 7, 2019 5:22:12 pm

Explained: Why has RBI cut lending rate by 35 bps? Why has GDP growth been revised downwards?

RBI rate cut explained: While inflation is a key consideration for a rate cut and it provided RBI the comfort to go for a cut, the decision was also taken to boost aggregate demand especially private investment.

RBI rate cut explained: The previous three cuts this year were 25 basis points each. Alongside a cut in the repo rate, the central bank also lowered its GDP growth projection from 7 per cent in June policy to 6.9 per cent now. Express Photo by Pradip Das

In a bid to augur economic activity amidst slowing consumption demand, the monetary policy committee of Reserve Bank of India on Wednesday unanimously decided to go for its fourth cut this year.