RBI's Fourth bi-monthly monetary policy - MPC's first decision - Rate cut by 25 bps

The Reserve Bank of India (RBI) on 4 October 2016 released the fourth Bi-Monthly Monetary Policy Statement 2016-17. 
●    The key announcement under the policy was the interest cut of 25 basis points. This move may lead to banks in lowering EMIs for housing, car loan and corporate borrowers.
●    This policy decision was not only RBI Governor Urjit Patel’s maiden policy announcement but was also the first to be announced by the newly constituted Monetary Policy Committee (MPC). 
●    All the six members of MPC unanimously decided to cut repo rate by 0.25 per cent; bring in to a nearly six-year low of 6.25 per cent. 
●    According to the monetary policy statement, the decision to cut interest rates is consistent with the aim of achieving a mid-term inflation target of 4 percent within a band of plus or minus 2 percent.
●    Based on the assessment of the current and evolving macroeconomic situation, the Monetary 
●    The policy repo rate under the liquidity adjustment facility (LAF) was reduced by 25 basis points from 6.5 per cent to 6.25 per cent with immediate effect.
●    The reverse repo rate under the LAF stands adjusted to 5.75 per cent.
●    Marginal standing facility (MSF) rate was fixed at 6.75 per cent.
●    The Bank Rate also stands at 6.75 per cent.