Current Affairs - Banking - Discussion

The RBI cut its repo rate by 25 basis points to 6% in its first bi-monthly policy review of 2019-20. The decision comes a week before the election starts on April 11. The central bank had reduced the benchmark lending rate by 25 basis points in February after an 18-month gap. The reverse repo rate, too, was lowered from 6% to 5.75%. The bank rate was fixed at 6.25%. What is Repo rate? Repo rate refers to the rate at which commercial banks borrow money from the Reserve Bank of India (RBI) in case of shortage of funds.