In a festive season offer, the Reserve Bank of India (RBI) on October 4 cut repo rate by 25 basis points to a six-year-low ofÂ 6.25 per cent. All six members of the monetary policy committee (MPC) in favour of cutting repo rate.
Tuesdayâ€™s policy review was the RBI’s fourth bi-monthly policy statement for the year 2016-17 was announced on October 4 afternoon instead of the existing practice of 11 am.
Earlier, ex-RBI governor Raghuram Rajan had the authority to bypass his advisors in matters of interest rate cuts. But his successor, Patel will have to go with the suggestion given by the MPCâ€”this is for the first time that say on interest rates has shifted to the six-member panel.
Patel also has to ensure that there is no let-up of the deadline set by Rajanâ€”March 2017â€”for banks to clean up their balance sheets.