Reserve Bank of India

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

Reserve Bank of India

June 7, 2016

The RBI’s repo rate was cut by a total of 150 basis points from 8.0% prior January 2015 to 6.5% — a 5+ year low — at the previous bi-monthly monetary policy review in April.  The size of April’s reduction was 25 basis points.  The reverse repo was also sliced in April and stands at […] More

Reserve Bank of India’s First Bi-Monthly Monetary Policy Review of Fiscal 2016/17

April 5, 2016

The main policy interest rate, the repo rate, was cut 25 basis points to 6.5%, lowest since 2011, while the reverse repo rate was hiked by 25 bps to 6.0%.  The narrowing of the corridor between the rates was one of several actions intended to strengthen the pass-through of changes in central bank policy rates […] More

Reserve Bank of India Leaves Monetary Policy Settings Unchanged

February 2, 2016

The key RBI repo rate of 6.75% as well as the 5.75% reverse repo rate and 4.0% reserve requirement were not cut further after the first central bank policy meeting of 2016. No changes had been anticipated, and none occurred at the prior meeting in December.  A statement from officials runs down the litany of […] More

Reserve Bank of India

December 1, 2015

Monetary policy was not changed at this week’s review.  The repo and reverse repos remain at 6.75% and 5.75%.  Policy easing was front-loaded earlier this year, with cuts of 25 basis points in January, May and June, followed with a greater-than-anticipated 50 bps in September.  A released statement makes these points: Front-loaded monetary support was […] More

A Front-Loaded 50-Basis Point Interest Rate Cut in India

September 29, 2015

The Reserve Bank of India’s repo and reserve repo rates were each reduced by 50 basis points to 6.75% and 5.75%.  The size of the cut was twice as much as expected and follows three 25-basis point reductions during the first half of calendar 2015.  A statement from RBI Governor Raghuram Rajan characterizes policy as […] More

Reserve Bank of India Keeps Policy Unchanged after Latest Bi-Monthly Review

August 4, 2015

There had been three cuts earlier this year (January, March and June) of 25 basis points in the repo rate (now 7.25%) and reverse repo (6.25%), but as expected, that didn’t happen again, nor was the 4% bank reserve requirement cut either.  Notably, CPI inflation rose sharply to 5.4%, a 9-month high.  Today’s statement observes […] More

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