Reserve Bank of India

Reserve Bank of India

February 7, 2018

India’s Monetary Policy Committee maintained its existing rate structure including a 6.0% repo rate after its first scheduled review of 2018. It did this despite a 5.2% inflation rate at end-2017, which is well above the target center of 4.0%. Official felt compelled to revised projected inflation in the first half of the fiscal year […] More

India’s Policy Interest Rate Kept at 6.0%

December 6, 2017

Although the decision not to change India’s monetary policy settings had been expected, the released statement embodies some mixed signals. There was a single dissenting vote to cut the main policy rate by 25 basis points to 5.75%. A previous such cut this year occurred in early August. On the other hand, note was made […] More

Reserve Bank of India

October 4, 2017

The Indian repo rate was left at 6.0% by a 5-1 vote, with one dissenter favoring a cut of 25 basis points. At the previous meeting in early August, the rate had been sliced by 25 basis points. The rate previously was reduced by 50 basis points in two moves during 2016 and by a […] More

Reserve Bank India Eases Stance

August 2, 2017

By a vote of 4-1-1, Indian monetary policymakers decided to reduce their repo and reverse repo rates by 25 basis points to 6.0% and 5.75%, thus becoming the first Asia central bank to enact a rate cut in 2017. The previous RBI interest rate cut had been done ten months ago. Officials released a statement […] More

Reserve Bank of India

June 7, 2017

For a fourth straight Monetary Policy Committee meeting, the key repo interest rates in India was kept at 6.25%. Such had been reduced by 125 basis points in 2015 and by a further 25 basis points in April and October of 2016. The Reserve Bank of India has a medium-term inflation target of 4.0%, and […] More

Reserve Bank of India Keeps Repo Rate at 6.25% with a Neutral Forward Bias

April 6, 2017

This was was the third straight meeting that left the repo rate at 6.25%. That interest rate had been cut twice last year by 25 basis points each in April and October, following four reductions totaling 125 bps in 2015. At a meeting in December, the reverse repo rate had been cut to its present […] More

Reserve Bank of India: No Rate Change and More Hawkish Statement

February 8, 2017

India’s Monetary Policy Committee failed to cut its interest rates, which many analysts had expected. There had been a cut in the reverse repo rate in December to 5.75% from 6.0% and cuts in both it and the repo rate of 25 bps last October. A drop in inflation seems transient. Therefore, a more hawkish […] More

Wait-And-See Stance at the Reserve Bank of India

December 7, 2016

The latest monetary policy review in India left the repo rate at 6.25%, the reverse repo at 5.75%, and reserve requirements unchanged. A released statement stressed uncertainty, guarded optimism, and a wish to see more data to confirm the baseline forecast amid considerable uncertainty affecting the global and Indian economies. This bi-monthly review is set […] More

Reserve Bank of India Eases

October 4, 2016

Markets had not been anticipating a policy change at the latest central bank review, but the Board of Directors agreed instead to enact their second 25-basis point reduction of India’s repo lending rate to 6.25%. The prior cut was done in April, and four cuts during 2015 totaled 125 basis points. In explanation, a released […] More

Reserve Bank of India Keeps Existing Policy Settings

August 9, 2016

A statement released after the third bi-monthly policy review retained the repo rate at 6.0%, the reverse repo at 6.0%, and the cash reserve requirement at 4%. This was the final meeting led by Governor Raghuram Rajan, who completes his 3-year term next month. Some concern is expressed about the potential for rising core inflation in […] More