Business: RBI cuts repo rate by 40 bps to 4 pc to increase credit flow

Mumbai: The Reserve Bank of India (RBI) on Friday reduced repo rate by 40 basis points to 4 per cent in an effort to further boost liquidity in the economy which has been reeling under the impact of COVID-19 induced countrywide lockdown.

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Also Read | Business: RBI hikes repo rate by 50 bps to 4.90 per cent

As a result, the reverse repo rate stands at 3.35 per cent, said RBI Governor Shaktikanta Das. The six-member monetary policy committee (MPC) voted 5:1 in favour of the decision.

Also Read | Business: RBI raises repo rate by 40 basis points to 4.40 pc with immediate effect

Repo rate is the rate at which a country's central bank lends money to commercial banks, and the reverse repo rate is the rate at which it borrows from them. (ANI)

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• #COVID 19
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