At its policy meeting on 16 June, the Reserve Bank of India (RBI) raised interest rates by 25 basis points, which drove the repo rate to 7.50%. The decision was widely expected by market analysts and represents the continuation of the tightening cycle that began in March 2010, when the RBI first increased the repo rate from a record-low of 4.75%. In its press release, the RBI acknowledged that growth in both the domestic sector and abroad is decelerating. However, the Bank confirmed that ?inflation remains high and much above the comfort zone? despite the recent ?moderation in commodity prices?. In this context, the RBI reaffirmed that its ?monetary policy stance remains firmly anti-inflationary, recognising that, in the current circumstances, some short-run deceleration in growth may be unavoidable in bringing inflation under control.?
India Monetary Policy
Central Bank raises interest rates further
June 16, 2011
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India Economic News
October 17, 2016
Recently-released data related to India’s external sector showed that the trade deficit totaled USD 8.3 billion in September, which was a smaller shortfall than the USD 10.2 billion gap recorded in September 2015 (August 2016: USD 7.7 billion deficit).
October 15, 2016
In September, consumer prices fell 0.23% from the previous month, which followed August’s flat growth.
October 12, 2016
The fall in industrial production moderated in August, after recording the largest contraction since November 2015 in July.
October 5, 2016
Activity in India’s manufacturing sector lost steam in September.
October 4, 2016
The newly facelifted Reserve Bank of India (RBI) decided to ease monetary policy at a scheduled meeting on 4 October, cutting the repurchase rate from 6.50% to 6.25%—an over five-year low.