The Reserve Bank of India (RBI) took markets by surprise today as it unveiled a cut to its headline interest rate outside the usual policy meeting schedule.
The RBI cut its policy rate – the repo rate – by 25 basis points to 7.75%, and lowered the reverse repo rate and marginal standing facility rate to 6.75% and 8.75% respectively.
Governor Raghuram Rajan highlighted a number of factors that had "significantly reduced the momentum of inflation" in delivering the monetary policy statement,
- Supervisory lessons: resolution is a ‘dirty business’
- Key Brexit vote complicates outlook for UK economy
- European auditors ask lawmakers for increased access to ECB documents
- Switzerland grants fintech firms access to interbank payment system
- BIS’s Borio calls on economists to take money more seriously