At its 16 September policy meeting, the Reserve Bank of India (RBI) voted to raise interest rates by 25 basis points, bringing the repo rate to 8.25%. The move was broadly anticipated by the market and represented the 12th rate hike since the tightening cycle began in March 2010. The Bank stated that ?inflation remains high, generalised and much above the comfort zone of the Reserve Bank.? Consequently, with its latest move the RBI has reaffirmed its commitment to tame inflation even at the expense of slower growth. In that vein, the RBI stressed that ?developments in the global economy over the past few weeks are a matter of serious concern? and acknowledged that growth in the fiscal year 2011/12 may fall short of the projections made in July, owing to slower demand in developed economies and faltering domestic activity on which ?the monetary policy stance is also contributing?.
India Monetary Policy
Central Bank lifts rates by 25 basis points
September 16, 2011
Looking for forecasts related to Monetary Policy in India? Download a sample report now.
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.