RBI votes for growth

The central bank is clearly not done yet on rate cuts

The Reserve Bank of India’s (RBI’s) Monetary Policy Committee has done exactly what the doctor ordered: It reduced the benchmark repo rate by 25 basis points for the third successive time in line with majority market expectations. And unlike the last two policy decisions, this one was unanimous, with all six MPC members voting for a cut in rates. The benchmark rate at 5.75 per cent is now the lowest in the last nine years. Thursday’s reduction in the repo rate underscores the theme: Growth impulses have weakened significantly and a sharp slowdown in investment activity, along with a continuing