The Monetary Policy Committee of the Reserve Bank of India on Thursday goes for 25 bps (Basis point is one-hundredth of per cent) rate cut in its second bi-monthly policy review of this financial year. Earlier this year the RBI slashed the repo rate (the rate at which commercial banks borrow money from the RBI) which from 6.50 per cent to 6per cent in two consecutive rate cuts. And this is the third rate cut by the RBI after which the repo rate now stands at 5.75 per cent. The RBI will use the monetary policy to stimulate the economy and will set the stage for Union Budget that is slated to be presented on 5th July. The RBI also changed its stance from ‘neutral’ to ‘accommodative’. Many wealth advisors and economists are happy with the unanimous decision of the RBI in favour of a rate cut. Today, all six member of the MPC voted in favour of a rate cut.