The Reserve Bank of India (RBI) on Thursday reduced the repo rate by 25 basis point and also changed its stance to "neutral" from existing "calibrated tightening". The repo rate, or the key interest rate at which the central bank lends short-term funds to commercial banks, now stands at 6.25 per cent, said the RBI in its sixth bi-monthly policy statement for 2018-19. Today's RBI policy statement is the first under Governor Shaktikanta Das, who took charge in December last year.

Mr Das took office nearly a week after the last policy meet on December 5 by his predecessor Urjit Patel. The RBI has maintained status quo on the key rates in the October and December policy reviews.