Rate was cut due to slowdown, fall in investments.
Loan rates to come down; repo rate now at 5.15%, GDP growth pegged at 6.1%
n this rate easing cycle, the terminal rate could reach 5 per cent or a tad lower by the end of FY20: Madhavi Arora.
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.
GDP forecast cut to 6.9% for FY20; fixed deposits to fetch less.
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.