The Reserve Bank of India (RBI) has cut the repo rate by 125 basis point since January 2015. The changes in the repo rate by the RBI take time to impact the economy and are aimed at securing a sustainable growth path over the medium term. The cuts in the repo rate since January 2015 are expected to boost investment and consumption and manage inflation within a comfortable band.

 This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha

Repo rate reduction aims to boost investment and consumption and manage inflation over the medium term. Repo rate reductions since January 2015 are presented as a monetary policy measure aimed at stimulating investment and consumption and managing inflation within a comfortable band, with the recognised effect that changes in the policy rate take time to transmit through the economy and are intended to secure sustainable medium term growth.