India’s new RBI governor Shaktikanta Das “has delivered what the Modi government was hoping for,” said Mark Williams, chief Asia economist of Capital Economics, in a note. The RBI’s monetary policy committee (MPC) cut the repo rate by 25 basis points to 6.25%, as forecast by 21 of 65 analysts polled by Reuters. India’s last repo rate cut, to 6 %, came in August 2017. In a tweet, Economic Affairs Secretary Subhash Chandra Garg welcomed the rate cut and stance change, saying the MPC had come up with a “balanced and pragmatic policy statement”. “Both recent history and forward guidance make a compelling case for the rate cut.

Source: Dhaka Tribune February 07, 2019 16:30 UTC