Reserve Bank of India Governor Raghuram Rajan unexpectedly cut interest rates today

  • To help revive growth
  • It was an unscheduled review
  • RBI lowered the benchmark repurchase rate to 7.75 percent from 8 percent
  • First reduction since May 2013

Reserve Bank of India Governor Raghuram Rajan statement:

  • “Key to further easing are data that confirm continuing disinflationary pressures”
  • “Also critical would be sustained high quality fiscal consolidation as well as steps to overcome supply constraints and assure availability of key inputs such as power, land, minerals and infrastructure”

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ADDED –

Credit Agricole-CIB in Hong Kong says another 25bp RBI cut is likely again in April

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Note The RBI meeting was scheduled for February 3. today’s cut has come outside a scheduled meeting .