New Delhi, Apr 4 (KNN) The Reserve Bank of India (RBI) has today cut the repo rate, or the rate at which it lends to banks, by 25 basis points to 6%.

This is the second consecutive rate cut from RBI under new Chief Shaktikanta Das.

Commenting on this Co –Founder and CEO, TradingBells, Amit Gupta said, “The RBI has cut the repo rate by 25bps to 6% as expected in the monetary policy meeting today. This was the first policy review of the new fiscal, and the final one before the general elections.

He said that the markets were expecting a rate cut of 25bps, and hence we do not expect any short term volatility in the domestic stock markets.

 He further said, “A rate cut would help in boosting borrowing and consumption which would help in countering receding inflation and boost the Industrial Production.”

Gupta added, “GDP growth rate has slowed to 6.6% in the Oct-Dec 2018 period and since the inflation is well within RBIs target range, a 25bps rate reduction should help in improving both these indicators at the same time.”

CEO of Epic Research, Mustafa Nadeem said that it’s a much expected and welcoming decision from the RBI. The street was discounting the same and the industry and sectors were looking forward to it.

He added, “Amid lower inflation and lower interest rate scenario globally; this move will certainly attract much liquidity for the economy. We are already seeing good numbers on FII fronts while this move will make sure the objective of growth is fulfilled.”

Nadeem further said, “Over the short term, we believe this could trigger a short term correction. Currently, the market was discounting the rate cut and also on the hope of a decisive mandate in upcoming LS2019.”

“Hence investors and traders should be aware that the trend is intact and on the upside. Any dips in this trend of 3-5% are good and should be utilized. We remain bullish on this trend,” he added.

The RBI on Thursday announced its first bi-monthly policy statement of the current financial year.

Consequently, the reverse repo rate under the LAF stands adjusted to 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.25%. (KNN/JM)