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4 Mar 2015
RBI cuts repo rate by 25bps – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares that the Indian central bank, in an intra-meeting decision cut the repurchase rate by 25bps to 7.50%, marking the second surprise by the RBI with respect to easing.
Key Quotes
“India central bank (RBI) announced another intra-meeting decision to cut interest rates by 25bps, lowering repurchase rate to 7.50%, reverse repo rate to 6.50%, and marginal standing facility rate to 8.50%. This marks the 2nd consecutive easing unveiled by the RBI in this surprise fashion, following the mid-January unexpected 25bps easing and a rate hold in early February.”
“Recall the most recent Jan CPI YoY reading for India was 5.1%, less than 5.6% expected, giving the central bank further room to act.”
“Rupee and Indian fixed income moved higher on the announcement, while the main equity index rose to record level.”
“RBI noted softer inflation readings may persist in H1 before firming slightly in H2, adding the INR currency has remained strong relative to peer nations, which is undesirable in that it boosts disinflation.”
Key Quotes
“India central bank (RBI) announced another intra-meeting decision to cut interest rates by 25bps, lowering repurchase rate to 7.50%, reverse repo rate to 6.50%, and marginal standing facility rate to 8.50%. This marks the 2nd consecutive easing unveiled by the RBI in this surprise fashion, following the mid-January unexpected 25bps easing and a rate hold in early February.”
“Recall the most recent Jan CPI YoY reading for India was 5.1%, less than 5.6% expected, giving the central bank further room to act.”
“Rupee and Indian fixed income moved higher on the announcement, while the main equity index rose to record level.”
“RBI noted softer inflation readings may persist in H1 before firming slightly in H2, adding the INR currency has remained strong relative to peer nations, which is undesirable in that it boosts disinflation.”