Cut: Repo by 25 bps, GDP by 80 bps

The reverse repo and marginal standing facility rates are now at 4.90 per cent and 5.40 per cent, respectively.

RBI to cut rates again on Friday

However, economists differ on the quantum of the rate cut ranging from 15 basis points to 50 basis points.

RBI has already slashed the repo rate (short-term borrowing rate) four times aggregating to 1.10 percentage points since January.

RBI Governor Shaktikanta Das also reinforced his dovish bias due to weak inflation and negative output gap.

A detailed guideline in this regard will be issued by September-end.

The RBI said various high frequency indicators suggest weakening of both domestic and external demand conditions.

The fourth consecutive rate cut is expected to lower EMIs for home and auto buyers, and borrowing cost for corporates.

Talking to reporters after the meeting, SBI chairman Rajnish Kumar had said he was hopeful of another rate cut by MPC.

Consensus expects RBI to lower repo rate by 25 bps to 5.50 pc at its monetary policy meeting on August 7, DBS said.

RBI has cut rates by 75 bps since the start of 2019, banks have only eased their key lending rate by 15-20 bps.