The present yields on the 10-year bond, which closed at 6.20% on Tuesday, have factored in a sure rate cut
The report further said that though the RBI is expected to cut 25 bps each on February 7 and April
The central bank got room to effect 25 bps rate cut due to a change in its stance on neutral real rate and the timeframe for achieving the inflation target
Chief executives also demanded banks pass on the benefits of the reduction in rates, which are at a six-year low
Interview with RBI Governor
Encouraged by the rate cut, the rate sensitive sectors such as real estate and automobiles are now expecting a bumper festival sales season
Outlook for agricultural activity has brightened considerably, says the policy document
In his first RBI monetary policy, Governor Urjit Patel cut rate by 25 bps to 6.25%
Patel makes it a point to meet country's influential economists and industry big-wigs before announcing the monetary policy.
August retail inflation eased to a five-month low of 5.05% but WPI inflation climbed to a two-year high of 3.74%
Better monsoon rains after two back-to-back droughts and lingering weaknesses in manufacturing have again opened the case for aggressive rate cuts
The rupee is likely to remain stable in the near term, with near-term forward rates also having fallen
RBI took this step to ensure adequate cash conditions in the banking system
RBI's third bi-monthly monetary policy meeting is scheduled on Tuesday and IIP will be announced on Friday
Inflation, by far, could remain the central focus of the policy
Stating that continuing weakness in private investment is a concern, RBI said demand conditions are likely to improve going forward
The RBI chief said that banks were not in a hurry to cut lending rates because of lack of demand
The RBI also signalled the prospect of another cut later this year if monsoon rains dampen upward pressure on food prices
Markets would be interested in Rajan's take on the recently published GDP data
Repo rate reduced by 25 bps to 6.5%, lowest since 2011; minimum daily CRR limit lowered to 90% from 95%; repo, reverse repo corridor narrowed to 50 bps