RBI delivers second rate cut with inflation racing to target
RBI cuts repo rate by 25 basis points to 7.5%
The Reserve Bank of India (RBI) cut its policy rate today for the second time this year, as inflation continues to fall at a faster rate than prescribed by the ‘glide path'.
Citing weakness in Asia's third-largest economy, Raghuram Rajan, the RBI governor, lowered the repurchase rate by 25 basis points to 7.5%.
"Given low capacity utilisation and still-weak indicators of production and credit off-take, it is appropriate for the Reserve Bank to be pre-emptive in its policy action," Rajan said in
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