The Reserve Bank of India today cut repo rates by 35 basis points. It was the fourth time this year, that the RBI cut rates as inflation remain subdued and economic growth sluggish.

Here are 9 takeways from the RBI Monetary Policy:

1) Repo rates stand reduced to 5.40 per cent, after a 35 basis points cut today. It is the fourth such cut in 2019, after three previous cuts of 25 basis points each previously.

2) April-June 2020 GDP growth projected at 7.4 per cent by the RBI.

3) Risks to FY 2020 GDP remained tilted in favour of a downside.

4) CPI inflation projected at 3.1 per cent for second quarter of 2019-20 and 3.5-3.7 per cent for first half of 2019-20, with risks evenly balanced.

5) Inflation is projected to remain within the target over a 12-month ahead horizon.

6) Four members (Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra, Shri Bibhu Prasad Kanungo and Shri Shaktikanta Das) voted to reduce the policy repo rate by 35 basis points, while two members (Dr. Chetan Ghate and Dr. Pami Dua) voted to reduce the policy repo rate by 25 basis points.

7) The transmission of policy repo rate cuts has improved somewhat, according to the RBI.

8) Liquidity in the system was good, given the return of currency and drawdown of excess cash reserve ratio by banks.

9) Merchandise exports for June contracted weighed down by jewellery.

10) Reverse repo rate under the LAF stands revised to 5.15 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 5.65 per cent.

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