In 2019, as a pre-emptive move against the risks associated with lingering sluggish global growth, the Monetary Board (MB) decided to reduce the policy rate by 25 bps in May, August, and September 2019, respectively. And in its most recent monetary policy stance meeting on 6 February 2020, the MB cut the policy rate by another 25bps.
The Board was of the view that a tame inflation environment, there is a room for a further preemptive reduction in the policy rate to support market confidence.