Following the November print of 5.54%, RBI had sprung a surprise and opted to hold the repo rate at 5.15 per cent. It, however, continued with the accommodative stance as long as it was necessary.
Since the scope of supporting growth through fiscal and monetary policy is fairly limited, economic revival will ultimately depend on policy reforms
When expected inflation drops, the policy rate should drop even more
What is telling is that large swings in the Indian business cycle are still not a thing of the past, despite the adoption of inflation targeting in India
The MPC has also brought down the projection of GDP growth of 6.9 per cent from 7 per cent, which is not significant but definitely does affect sentiment
From Sitharaman's first RBI rate cut to all-India protest by CPI(M), Business Standard brings you top events to look forward to on Wedneday
Finance Minister Nirmala Sitharaman has ratcheted up pressure on the six-member monetary policy committee for a 'significant cut' to lift economic growth from a five-year low
The MPC is likely to stay on hold when it announces its policy decision next week
Indian rupee is down about 5% against the dollar this year and yields have spiked on government and corporate bonds
RBI Deputy Governor Viral Acharya said he would favour rate hikes in future, but not now
India's benchmark 10-year bond yield rose as much as 11 bps in early trade to 7.82 percent
The six-member monetary policy committee's two-day meeting to decide on policy rates will start on Tuesday