RBI unexpectedly slashes repo rate by 40 bpsRBI unexpectedly slashes repo rate by 40 bps
FILE PHOTO: A security guard’s reflection is seen next to the logo of the Reserve Bank Of India (RBI) at the RBI headquarters in Mumbai

MUMBAI (Reuters) – The Reserve Bank of India on Friday unexpectedly slashed its key policy rate for a second time this year, in a move to counter the economic fallout from an ongoing nationwide lockdown to contain the spread of the novel coronavirus.

It cut the repo rate by 40 basis points to 4%. The reverse repo rate was also reduced by 40 basis points to 3.35%.

In a video conference, RBI Governor Shaktikanta Das said the central bank’s Monetary Policy Committee (MPC) had voted to maintain its “accommodative” stance.

(Reporting by Swati Bhat and Chris Thomas; Writing by Euan Rocha; Editing by Shri Navaratnam)