The Reserve Bank of India’s monetary policy committee made its second consecutive rate cut today (April 4), voting by four to two to cut rates.
The MPC’s announcement cited a worsening economic outlook as a key reason to cut the main rate 25 basis points to 6%. Policy-makers noted growth had disappointed, with high-frequency indicators pointing to a slowdown in manufacturing and “subdued” investment demand. Credit flows to small businesses were “muted”.
“Overall, the output gap remains