(Corrects to say that all six members voted in favour of the
rate cut, not did not provide a breakdown)
MUMBAI Oct 4 India's newly-minted monetary
policy committee delivered a surprise 25-basis-point cut in the
repo rate to 6.25 percent on Tuesday, as Reserve Bank of India
Governor Urjit Patel presided over his first policy review since
his appointment last month.
The repo policy rate is now at its lowest since
November 2010. The RBI said all six members voted in favour of
the rate cut.
Analysts had braced for a close vote. About 40 percent of
analysts polled by Reuters had forecast a cut, while 60 percent
had expected the central bank to keep the repo rate
The MPC was introduced to make decision-making more
transparent and more collegiate. Hitherto, the RBI governor had
taken sole responsibility for deciding rates. The governor still
gets a deciding vote if the panel is evenly split.
(Reporting by Suvashree Dey Choudhury and Rafael Nam; Editing
by Simon Cameron-Moore)