The monetary policy committee of Reserve Bank of India today slashed repo rates by 25 basis points – 5th consecutive time in a row and now stands at 5.15%. Repo rate is the rate of interest charged when the central bank lends money to the commercial banks.
The reverse repo rate now stands at 4.9 per cent. All mpc members voted in favor of a rate cut.
But Indian stock markets reacted negatively to the rate cut but slowly recovering form the days lows. At 12:12pm Sensex at -0.10% and Nifty at -0.23%.
In other indices pharma, IT, metal and auto in green and rest are in red. Only FMCG and media are down more than 1%.