RBI cuts policy repo rate by 75 bps to 4.40%

India's central bank finally pulls the trigger

The meeting was supposed to be scheduled for next week (3 April) but the central bank says that they have brought forward the decision, with the committee voting 4-2 in favour of cutting its policy repo rate by 75 bps from 5.15% to 4.40%.

This is the first rate cut by the central bank this year, following their previous decision to cut rates back in October last year - where they reduced rates from 5.40% to 5.15%.

With the country going into lockdown, the move here should help alleviate pressures on the economy and so far the rupee and Indian bonds are responding favourably.