Mumbai, June 6 -- Announcing the monetary policy on Friday from Mumbai, Reserve Bank of India (RBI) Governor Sanjay Malhotra announced that the MPC has decided to reduce the policy repo rate under the Liquidity Adjustment Facility by 50 basis points to 5.5 per cent.

He said, "The reduction recommended by the MPC is for 50 basis points to 5.5 per cent. This is with an immediate effect."

The RBI Governor also mentioned that the reason for repo cut is that the inflation softened, near-term and medium-term alignment is within RBI range, and food inflation remains soft."

Consequently, the Standing Deposit Facility Rate, which is the SDF Rate, shall stand adjusted to 5.25 per cent, and the Marginal Standing Facility MSF Rate and the Bank Rat...