RBI eases policy by 25bp as part of efforts to spur growth
Bank makes first rate cut for nearly five years, despite inflation being above target
The Reserve Bank of India today (February 7) eased policy by 25 basis points to 6.25%, as part of efforts to boost economic growth.
Under governor Sanjay Malhotra, the six-strong monetary policy committee (MPC) agreed unanimously on the cut – the bank’s first since May 2020.
The decision came despite consumer price inflation remaining above the bank’s target of 4% (with a two percentage point buffer). Headline inflation was at 5.22% in December 2024, down from 5.48% the previous month.
The RBI has
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Turkey raises overnight lending rate in emergency move
Central bank tries to protect lira after opposition figure’s arrest triggers fall in currency
Inflation expectations rising due to tariffs – BoC’s Macklem
Governor says Canada’s central bank will pursue policy that works in multiple scenarios
Iceland and Switzerland cut rates, while Sweden holds
Central banks highlight global developments and high levels of uncertainty
China holds loan prime rates again
PBoC stays put while government works to boost consumption
Brazil delivers another 100bp hike
BCB’s battle against inflation continues as government announces more fiscally expansionary measures
Bank of England holds rates amid ‘elevated uncertainty’
UK central bank opts to stick at 4.5%, citing potential for increased financial volatility
FOMC holds rates amid uncertainty and stagflation risks
Fed chair Jay Powell says inertia also a factor as committee opts for caution
Denmark will reach r* this year – central bank
National Bank of Denmark continues 26-month streak of non-intervention in FX market