RBI cuts policy repo rate to 7.25% – RBS

FXStreet (Barcelona) – Sanjay Mathur, Head of Economics Research – Asia-Pacific (ex-Japan) at RBS, notes that the Reserve Bank of India cut rates by 25bps in line with expectations.

Key Quotes

“Largely in line with our expectations, the RBI reduced its policy repo rate by 25bps to 7.25%. The reverse repo rate was reduced to 6.25% with no change in the reporeverse repo corridor. The cash reserve ratio (CRR) was maintained at 4%.”

“The policy statement acknowledged the uneven and lacklustre pace of economic recovery but at the same time cautioned over a potential hardening of inflation pressures over the course of the year. Based on the policy statement, it appears that the monetary easing cycle is now in its conclusive stages.”

Sanjay Mathur, Head of Economics Research – Asia-Pacific (ex-Japan) at RBS, notes that the Reserve Bank of India cut rates by 25bps in line with expectations.

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