The rate cut is a clear indicator of fact that RBI and the govt are now on the same page as far as emphasis on sustainable economic growth is concerned
50-bp rate cut takes bond yields near 26-month low
Banks have been reluctant to transmit the entire policy rate cut to borrowers as they want to keep their deposit rates attractive to match with those in small saving schemes
The monetary policy report points to the risk of long drawn global stagnation that we should be concerned about
Few economists expect a prolonged pause, which may extend even beyond the end of this financial year
More money will flow into low-cost housing and at lower rates
Weakness of dollar in the overseas market affected the market sentiment
He also said that the focus needs to shift to squeezing inflation further to 5% by early 2017
Adds that govt committed to meet its fiscal deficit targets
Assocham Secretary General D S Rawat termed RBI's move to slash key rate a 'pleasant surprise'
But big ticket investments will still take time and more rate cuts needed
These rates were 66.0805 and 73.8119 respectively yesterday
The RBI cut 50 basis points its repurchase rate on short-term borrowings, to 6.75 %
This was being done in response to the 0.5 % cut in repo rate announced by RBI earlier in the day, said Das
The central bank responded to widespread calls to lower the interest rate to boost domestic investment
45 of 51 economists expect RBI to cut repo rate by 25 bps to 7%
The surprise cut by the central bank will have the greatest impact on home, auto and personal loans
Expect a long pause from RBI after today's rate cut
Sustained capital outflows, weak equities weigh on rupee