Reserve Bank of India

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

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