RBI reduces interest rate after a gap of nearly five years by 25 basis points

New Delhi: New RBI Governor Sanjay Malhotra on Friday announced the decision of 25 basis points reduction in interest rate after a gap of nearly five years.

Malhotra chaired his first Monetary Policy Committee (MPCC) meeting of the six-member panel.

MPC decided to reduce policy rate by 25 basis points to 6.25 per cent, said RBI Governor.

Rate-setting panel decides to continue with 'neutral' monetary policy stance, said RBI Governor.

Malhotra said that RBI estimates GDP growth in next fiscal year at about 6.7 per cent.