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.