MUMBAI: The coronavirus pandemic has forced the Reserve Bank of India (RBI) to advance its scheduled monetary policy meet a second time and announce deep cuts to benchmark rates.
RBI governor Shaktikanta Das, in a televised address on Friday, announced a 40 basis points (bps) cut in repo and reverse rates, markedly pivoting the RBI's focus from inflation control to fostering growth impulses.
Amid an uncertain inflation outlook and expectations of a collapse in growth, the Monetary Policy Committee (MPC) of the RBI voted five to one for the 40-bps cut in benchmark rates, with member Chetan Ghate voting for a 25-bps cut.