Reserve Bank of India

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

Another Easing of Monetary Policy in India

June 2, 2015

Today’s 25-basis point reductions in the Reserve Bank of India’s repo and reverse repo rates to 7.25% and 6.25% constitute the third easing move of 2015, matching in size similar cuts in January and March.  The latest easing did not surprise analysts in its timing.  Although observing continuing potential upside risks to inflation that bear […] More

Reserve Bank of India: No Change in Interest Rates or Bank Reserve Requirements

April 7, 2015

The framework of monetary policy changed in January, with the establishment then of an inflation reduction target to be followed by an inflation containment target once 4% is attained around March 2018.  The targets were endorsed by the government as well as the central bank.  In conjunction with the shift in January, policy was allowed […] More

Post-Easter Session Sees Equities and Aussie Dollar Rise

April 7, 2015

Following the advance in the Dow on Monday, the return of markets that had been closed for Easter saw share prices advance 2.2% in China, 1.3% in Japan, 0.8% in Hong Kong and Indonesia, 0.5% in Australia and 0.4% in Singapore, Taiwan and New Zealand.  European stocks have thus far advanced by 1.5% in Great […] More

Reserve Bank of India Cuts Rates between Scheduled Meetings

March 4, 2015

RBI Governor Rajan released a statement announcing a new monetary policy framework oriented around a single target of 4% CPI inflation give or take two percentage points.  The statement also informed markets about a 25-basis point cut of the RBI repo rate to 7.5%.  A similar cut on January 15 (also not coinciding with a […] More

Reserve Bank of India

February 3, 2015

India’s is one of the central banks that already had cut interest rates this year in response to the disinflationary impact of the price of oil and other key commodities.  See my earlier review of the 25-basis point cut on January 15 following an unscheduled meeting of Reserve Bank of India policymakers.  Today was the […] More

Financial Markets Relieved by Two Developments

February 3, 2015

The new Greek government retreated from talk of a debt write-off and is instead offering a plan to swap its existing debt with new securities.  The plan would give Greece more time to pay off its obligations.  Greek share prices shot up over 8% in response.  The 10-year Greek sovereign debt yields slid two basis […] More

Reserve Bank of India: First Interest Rate Cut since May 2013

January 15, 2015

RBI Governor Rajan has made good on a promise in December’s review that an intra-meeting rate cut was possible in early 2015 if the momentum of inflation, which started to ease after last July, continued in that direction.  The central bank today announced cuts of 25 basis points in the repo rate to 7.75% and […] More

Reserve Bank of India

December 2, 2014

Once again, India’s monetary policy was left unchanged following a scheduled bi-monthly review.  The repo rate, reverse repo, and reserve requirement ratio will remain at 8%, 7% and 4%.  Interest rate hikes had been raised 25 basis points each in September and October 2013 and, most recently, January 2014.  A released statement from Governor Rajan.  […] More

Reserve Bank of India

September 30, 2014

India’s key 8.0% lending rate, a.k.a. the repo, and 7.0% borrowing rate have been at those levels since a policy meeting late last January hiked each by 25 basis points.  For a fourth time, a subsequent meeting has not changed either of those rates nor the 4.0% cash reserve ratio.  The benchmark interest rates had […] More