The Secretary, Department of Economic Affairs (DEA), Shri Subhash Chandra Garg said that the Government welcomes the 25 basis points cut in the repo rate announced today by the Monetary Policy Committee (MPC) in its third Bi-Monthly Meeting held in Mumbai today. Shri Garg further said that this is as an important step necessary to converge toward the appropriate real monetary conditions for sustained growth consistent with India’s potential and for stable, moderate inflation.

Following is the text of the Statement of Shri Subhash Chandra Garg, Secretary, DEA:

“We have taken note of the statement of the MPC and its assessment of the inflation and growth outlook. We welcome the 25 basis points cut in the repo rate as an important step necessary to converge toward the appropriate real monetary conditions for sustained growth consistent with India’s potential and for stable, moderate inflation”.

Repo rate cut welcomed as necessary to restore appropriate real monetary conditions for sustained growth and stable inflation. The Department of Economic Affairs welcomes the MPC's 25 basis points reduction in the repo rate, endorsing the Committee's inflation and growth assessment and describing the cut as a necessary step to align real monetary conditions with sustained growth and stable, moderate inflation consistent with the economy's potential.