Fed cut not decisive for policy: RBI

Reserve Bank of India Governor Y V Reddy today said the 25-basis-point cut in interest rate by the US Federal Reserve on Tuesday was a relevant factor, but not necessarily the determining one for monetary policy decisions.

"RBI has its monetary policy where number of factors are taken into account and the Fed rate cut is a relevant, but not necessarily the determining factor in this regard," Reddy said on the sidelines of the central bank's board meeting here.

On Tuesday, the Fed slashed interest rates by 25 basis points to prevent the economy that showed signs of moderation, from slipping into a recession.