FOREX TradingCharts.com

Financial News: India Cuts Rate By 25 Bps For Third

India Cuts Rate By 25 Bps For Third Time

06/06/2019 - 06:01:00 (RTTNews)

(RTTNews) - India's central bank resorted to a quarter-point reduction in interest rate on Thursday, the third in a row, that took it to the lowest level since 2010, and tweaked its stance of monetary policy to accommodative from neutral.

Citing weak growth impulses, policymakers of the Reserve Bank of India unanimously decided to slash the repo rate by 25 basis points to 5.75 percent from 6.00 percent.

Consequently, the reverse repo rate was adjusted to 5.50 percent.

The bank had earlier reduced its rates twice this year, in February and April.

At its second bi-monthly meeting in the financial year starting April, the six-member Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, unanimously decided to change the policy stance from neutral to accommodative, indicating more easing in near-term.

Aggressive loosening will be a mistake, Shilan Shah, an economist at Capital Economics, said.

With a growing perception that the RBI's credibility as an inflation fighter is being eroded, further policy loosening raises the risk that inflation rebounds and ultimately requires interest rates to be higher over the longer term, Shah added.

The monetary policy committee said a sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern.

Even after two rate cuts, the committee observed scope to accommodate growth concerns as the headline inflation trajectory remains below the target. The action is expected to help boosting aggregate demand and reinvigorate private investment activity.

The bank lowered its GDP growth outlook to 7 percent from 7.2 percent for the financial year 2020 on weak domestic investment activity, escalating trade wars weighing on exports, and weak private consumption.

Further, taking into account the impact of rate cuts and expectations of a normal monsoon, the bank revised down the path of CPI inflation to 3.0-3.1 percent for the first half of the fiscal 2020 and to 3.4-3.7 percent for the second half.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Bank Of England Keeps Rate Unchanged; Cuts Q2 Growth Outlook (23 min(s), 12 sec(s) ago)
(RTTNews) - The Bank of England maintained its interest rate and quantitative easing, as widely ex ...Full Story»

Swiss Exports Fall Further In May (39 min(s), 12 sec(s) ago)
(RTTNews) - Switzerland's exports fell for the third month in May, while imports rose, data fr ...Full Story»

Slovenia Output Price Inflation Slows In May (57 min(s), 12 sec(s) ago)
(RTTNews) - Slovenia's output prices slowed in May after rising in the previous month, figures ...Full Story»

Japan All Industry Activity Rises In April (59 min(s), 12 sec(s) ago)
(RTTNews) - Japan's industrial activity rose for the first time in three months in April, figu ...Full Story»

Denmark Consumer Confidence Falls Slightly (01 hr(s), 05 min(s), 12 sec(s) ago)
(RTTNews) - Denmark's consumer confidence fell slightly in June, survey data from Statistics D ...Full Story»

Turkey Consumer Confidence Rises In June (01 hr(s), 06 min(s), 12 sec(s) ago)
(RTTNews) - Turkey's consumer confidence rose in June after falling in the previous month, fig ...Full Story»

Taiwan Central Bank Keeps Rate Unchanged (01 hr(s), 33 min(s), 12 sec(s) ago)
(RTTNews) - Taiwan's central bank maintained its key interest rate for the twelfth straight me ...Full Story»

UK Retail Sales Fall For Second Month (03 hr(s), 05 min(s), 12 sec(s) ago)
(RTTNews) - UK retail sales declined for the second straight month in May, figures from the Office ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Bank Of England Keeps Rate Unchanged; Cuts Q2 Growth Outlook

06/20/2019 - 07:28 AM (RTTNews)
(RTTNews) - The Bank of England maintained its interest rate and quantitative easing, as widely ex ...Full Story>>

Swiss Exports Fall Further In May

06/20/2019 - 07:12 AM (RTTNews)
(RTTNews) - Switzerland's exports fell for the third month in May, while imports rose, data fr ...Full Story>>

Slovenia Output Price Inflation Slows In May

06/20/2019 - 06:54 AM (RTTNews)
(RTTNews) - Slovenia's output prices slowed in May after rising in the previous month, figures ...Full Story>>

Japan All Industry Activity Rises In April

06/20/2019 - 06:52 AM (RTTNews)
(RTTNews) - Japan's industrial activity rose for the first time in three months in April, figu ...Full Story>>

Denmark Consumer Confidence Falls Slightly

06/20/2019 - 06:46 AM (RTTNews)
(RTTNews) - Denmark's consumer confidence fell slightly in June, survey data from Statistics D ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.