Reserve Bank of India cuts repo rate by 25 bps to 7.5%

  • effective immediately
  • Says further monetary policy action to depend on income data
  • Governor Rajan says sees lower inflation to 4% plus or minus 2%
  • Says preemptive action guided by weak economic indicators
  • Disinflation evolving at faster rate than envisaged

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Another surprise cut from the RBI.

This is the second time this year the banks has cut outside a scheduled meeting. They last cut on January 15.