RBI reduces repo rate by 40 basis points, reverse repo rate unchanged

Addressing a press conference, RBI governor Shaktikanta Das said that reverse repo rate will remain unchanged while repo rate will be reduced by 40 basis points. Hence, the repo rate has been revised from 4.40% to 4.00%. This move is intended to help in making lending by banks cheaper. Meanwhile, Das also said that industrial production shrank by close to 17% in March with manufacturing activity down by 21%. Output of core industries contracted by 6.5%.