{"id":6197,"date":"2015-03-04T07:03:50","date_gmt":"2015-03-04T12:03:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6197"},"modified":"2015-03-04T07:03:50","modified_gmt":"2015-03-04T12:03:50","slug":"india-central-bank-cuts-interest-rate-pre-emptively-for-second-time-in-2-months","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6197","title":{"rendered":"India Central Bank Cuts Interest Rate “Pre-Emptively” For Second Time In 2 Months"},"content":{"rendered":"

India Central Bank Cuts Interest Rate “Pre-Emptively” For Second Time In 2 Months<\/a><\/h3>\n

In a surprise move, the RBI just cut its main interest rates for the second time in two months, taking it from 6.75% to 6.50%, in what the central bank calls a \u201cpre-emptive\u201d policy move, but what is in reality merely a confirmation that so far in 2015 at least 20 central banks have lowered their interest rate.<\/p>\n

From the statement:<\/p>\n

The RBI notes that the rupee has remained strong relative to peer countries. While an excessively strong rupee is undesirable, it too creates disinflationary impulses\u2026\u00a0<\/em><\/p>\n

…softer readings on inflation are expected to come in through the first half of 2015-16 before firming up to below 6 per cent in the second half. The fiscal consolidation programme, while delayed, may compensate in quality, especially if state governments are cooperative. Given low capacity utilisation and still-weak indicators of production and credit off-take, it is appropriate for the Reserve Bank to be pre-emptive in its policy action to utilise available space for monetary accommodation.\u00a0<\/em><\/p><\/blockquote>\n

Via Bloomberg:<\/p>\n

    \n
  • INDIA\u2019S RBI CUTS RATE TO 7.5%<\/strong><\/li>\n
  • INDIA CUTS REVERSE REPURCHASE RATE TO 6.50% FROM 6.75%<\/strong><\/li>\n
  • RBI KEEPS CASH RESERVE RATIO OF SCHEDULED BANKS UNCHANGED AT 4%<\/strong><\/li>\n
  • INDIAN RUPEE ONE-MONTH FORWARDS EXTEND GAIN AS RBI CUTS RATE<\/strong><\/li>\n
  • RAJAN SAYS FURTHER MONETARY ACTION TO DEPEND ON INCOME DATA<\/strong><\/li>\n
  • RBI: DISINFLATION EVOLVING AT FASTER RATE THAN ENVISAGED<\/strong><\/li>\n<\/ul>\n

    …and more from Reuters:<\/p>\n

     <\/p>\n

    …click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

    India Central Bank Cuts Interest Rate “Pre-Emptively” For Second Time In 2 Months In a surprise move, the RBI just cut its main interest rates for the second time in two months, taking it from 6.75% to 6.50%, in what the central bank calls a \u201cpre-emptive\u201d policy move, but what is in reality merely a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,202,422,426,1400,431,534,3914],"class_list":["post-6197","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-deflation","tag-india","tag-inflation","tag-interest-rate-cut","tag-interest-rates","tag-monetary-policy","tag-rbi"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6197"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6197\/revisions"}],"predecessor-version":[{"id":6198,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6197\/revisions\/6198"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}