The Reserve Bank of India will meet days after a report showed growth collapsed to 4.5 per cent in the July-September quarter, the first time it's been below 5 per cent since 2013
The recent inflation data is not a serious problem for the Monetary Policy Committee
Bank of America Merill Lynch expects the RBI to slash rates by 25 basis points (bps) in its December monetary policy review and follow it up with another 15 bps cut in February 2020
At the global level, trade war tussle, monetary policy of major central banks and oil prices, analysts feel, are the factors that will dictate market direction
MPC concern explains Governor Shaktikanta Das's statement that the Reserve Bank of India would keep its policy stance accommodative.
At 4.75%, India will still offer positive rates of return to investors seeking high yields
The latest trouble in the banking system may further hurt lending in an industry still grappling with the fallout from the collapse of a major shadow lender last year
The direction is clear -- there will be more rate cuts but the pace will depend on the incoming data
The Reserve Bank of India lowered its benchmark repurchase rate by 25 basis points to 5.15 per cent on Friday, in line with the forecasts of a majority of economists
Although the transmission of monetary easing undertaken so far has been staggered and incomplete, it is expected to improve going forward.
The RBI clearly signalled its continued focus to revive growth, implying that more rate cuts are in the offing.
According to BIS, NDFs in six currencies account for two-thirds of the trade in the NDF globally
The RBI's action was also influenced by central banks globally, especially those of the emerging markets
The move would go some way in improving consumer sentiment in the festive season, which is a crucial period for real estate sales, Puri added.
Industry's reaction came as the central bank slashed its benchmark lending rate by 0.25 percentage points to 5.15 per cent.
Citing geo-political uncertainties and elevated food prices, the RBI revised inflation projection upward to 3.4 per cent for Q2FY20, while projections were retained at 3.5-3.7 per cent for H2FY20
The six-member Monetary Policy Committee (MPC) cut the repo rate by 25 basis points to 5.15 per cent
The RBI slashed the GDP growth projection for financial year 2019-20 (FY20) to 6.1 per cent from the earlier forecast of 6.9 per cent.
Most analysts had expected the RBI to cut interest rates, although they were unsure of the quantum following an unconventional 35 basis-point easing last time.
The cut in GDP projection for FY20 is curious because it is also an admission that these 135 bps cuts in interest rates will not have a major impact on growth this year