A newly minted Monetary Policy Committee (MPC) delivered a surprise 25-basis-point cut in the repo rate to 6.25% today, as Reserve Bank of India Governor Urjit Patel presided over his first policy review since his appointment last month.
The repo policy rate is now at its lowest since November 2010. The RBI did not provide a breakdown of how the six members of the monetary policy committee voted.
The MPC was introduced to make decision-making more transparent and more collegiate. Hitherto, the RBI governor had taken sole responsibility for deciding rates. The governor still gets a deciding vote if the panel is evenly split.