Yet again the Reserve Bank of India (RBI) went for an out-of-turn policy rate cut on Friday. Following an off-cycle meeting, earlier slated for June 3-5, of its six-member monetary policy committee (MPC), the central bank cut its policy repo rate by 40 basis points from 4.4 per cent to 4 per cent.
Following this, the reverse repo rate, or the rate at which the banks perk extra liquidity with the RBI, was reduced to 3.35 per cent from 3.75 per cent — both at their historic lows.
One basis point (bps) is a hundredth of a percentage point.
The latest round followed a 75.....