Mumbai, April 9 -- April 9:RBI Governor Sanjay Malhotra on Wednesday announced a 25 basis cut in the policy rate from 6.25 per cent to 6 per cent and change in monetary policy stance from neutral to accommodative to accelerate economic growth.
The RBI Governor said that the decision to cut the repo rate has been taken unanimously by the Monetary Policy Committee (MPC) keeping in mind the macroeconomic and financial conditions and outlook. Malhotra said that the MPC has decided to change the monetary policy stance from neutral to accommodative, which will pave the way for easing the monetary policy with more liquidity injections to accelerate economic activity.
This will replace the Neutral stance which requires neither stimulation nor cur...