MUMBAI The Reserve Bank of India (RBI) cut its policy interest rate by 25 basis points to 6.50 percent on Tuesday, reducing it to a more than five-year low while dangling the prospect of another cut later this year if inflation trends stay benign.
MUMBAI The Reserve Bank of India cut its repo rate by 25 basis points to 6.50 percent on Tuesday, making a widely expected first reduction since September to bring the rate to its lowest in more than five years.
MUMBAI The bond market gained after the Reserve Bank of India (RBI) cut the key policy repo rate by 25 basis points while announcing measures to ensure more availability of cash in the banking system.
MUMBAI/NEW DELHI Reserve Bank of India Governor Raghuram Rajan said on Tuesday the focus should be on how to ensure banks bring down their lending rates, rather than on debating how many rate cuts the central bank should be delivering.
Quotes from Rajan's press conference
RBI Governor Raghuram Rajan spoke to the media after the central bank cut its policy interest rate by a quarter percentage point on Tuesday.
- Borrowing rates are coming down significantly in the economy
- Effects of liquidity measures will help policy rate transmission
- Have made enabling changes to move to 14-day operating repo target with policy changes
- Deposit growth at 9-9.5 pct is reasonable, nothing to be "sneezed at"
- Have asked banks to take action as soon as they initiate strategic debt restructuring instead of waiting
Rajan On Liquidity
- Will estimate over next 12 months how much durable liquidity we want to infuse in the economy
- Regardless of short term liquidity, we will infuse that durable liquidity every month
- Infusing liquidity could come in form of buying foreign assets or domestic assets