The central bank simultaneously reduced the reverse repo rate to 3.35 per cent.
RBI Governor Shaktikanta Das announced a cut in the repo rate by 40 basis points (bps) to 4 per cent, in his first address to the media after the government unveiled a fiscal and monetary stimulus worth Rs 20.97 lakh crore to support an already-ailing economy against the coronavirus pandemic. The RBI’s monetary policy committee in an off-cycle meeting voted 5-1 to for a 40 bps repo rate cut, the Governor said. The central bank simultaneously reduced the reverse repo rate to 3.35 per cent.
Earlier on March 27, the RBI had slashed the repo rate by 75 bps to stimulate growth. And in April, the central bank unexpectedly cut its key deposit rate or reverse repo rate to 3.75% to discourage banks from parking idle funds with it and spur lending.