The decision to lower rates is surprising because the main factor which determines policy decision, i.e. CPI inflation potential remains unchanged
FPIs had felt some restrictions were too onerous and difficult to monitor, and wanted these to be done away with
RBI said the short-term outlook for food inflation appears particularly benign, despite adverse base effects
The central bank also changed its monetary policy stance to 'neutral' from the earlier 'calibrated tightening', signalling further softening on its approach towards interest rates
The RBI press release said guidelines in this regard will be issued by the end of February 2019
Real interest rates in India are among the highest in Asia, and calls for the first cut in the policy rate since August 2017 have been growing
Perception of comfortable liquidity is different for RBI and markets
'If you say there are job losses where is this growth coming from,' Kumar said in response to criticism about lack of generation of employment
The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das will start its three-day meet in Mumbai on Tuesday and announce the policy on February 7
The inflation based on the Consumer Price Index (CPI) eased to an 18-month low of 2.19 per cent in December compared to 2.33 per cent in November and 5.21 per cent in December 2017
The consumer food price index contracted 2.51 per cent in December; in November, it had contracted 2.61 per cent
The 12-minute speech by Sudarshan Sen focused on why all banks, not merely internationally active ones, should maintain a higher minimum capital than what is prescribed under the Basel framework
The benchmark yield slid to a new eight-month low of 7.42% as against previous day's close of 7.44
Growth momentum is expected to accelerate in FY20 compared to FY19 and bank credit growth has already started increasing
The RBI has mandated a minimum level of 'loan component' in fund-based working capital finance for larger borrowers and issued final guidelines
RBI Governor Urjit Patel indicated that the policy course could change soon, depending upon the movement in oil prices
Over the past two months, the RBI has also infused liquidity through the term-repo window, in addition to the liquidity-adjustment facility
Urjit Patel chose not to answer any question on RBI's relationship with the government
A change in stance (to neural) or even a rate cut is not ruled out next year, writes Tamal Bandyopadhyay.
RBI said it was willing to reconsider its stance if there were favourable macroeconomic indicators