Reserve Bank of India

Brazilian and Indian Monetary Policy Decisions

August 1, 2018

Central Banks in two of the four BRIC economies held monetary policy reviews. Coincidentally, while the Brazilian Selic rate was left unchanged at 6.50%, the Indian repo rate was lifted 25 basis points to rest also at 6.50%. Previously, the Selic rate was lowered sharply by 50 basis points in 2016, 675 bps last year […] More

Reserve Bank of India

June 6, 2018

A trend reversal in the interest rate cycle has occurred. For the first time since January 2014, monetary officials raised their key repo and reverse repo rates to 6.25% and 6.0%, respectively. Although the future rate bias remains “neutral,” a released statement presents a picture of greater upside inflationary risk despite recently lower food cost […] More

Reserve Bank of India

April 5, 2018

The RBI Monetary Policy Committee’s first bimonthly policy statement of fiscal 2018/19 notes that the future trajectory of CPI inflation now seems likely to be somewhat lower than that imagined two months ago due lower food and fuel costs. Inflation of 4.4% in February was close to the 4% medium-term target midpoint. But domestic demand […] More

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