The RBI clearly signalled its continued focus to revive growth, implying that more rate cuts are in the offing.
According to BIS, NDFs in six currencies account for two-thirds of the trade in the NDF globally
The RBI's action was also influenced by central banks globally, especially those of the emerging markets
The move would go some way in improving consumer sentiment in the festive season, which is a crucial period for real estate sales, Puri added.
Industry's reaction came as the central bank slashed its benchmark lending rate by 0.25 percentage points to 5.15 per cent.
Citing geo-political uncertainties and elevated food prices, the RBI revised inflation projection upward to 3.4 per cent for Q2FY20, while projections were retained at 3.5-3.7 per cent for H2FY20
The six-member Monetary Policy Committee (MPC) cut the repo rate by 25 basis points to 5.15 per cent
The RBI slashed the GDP growth projection for financial year 2019-20 (FY20) to 6.1 per cent from the earlier forecast of 6.9 per cent.
Most analysts had expected the RBI to cut interest rates, although they were unsure of the quantum following an unconventional 35 basis-point easing last time.
The cut in GDP projection for FY20 is curious because it is also an admission that these 135 bps cuts in interest rates will not have a major impact on growth this year
The central bank is likely to cut repo rate for the fifth time in a row
The policy decision will be announced at 11:45 a.m. in Mumbai, followed by a press conference 15 minutes later by Das
The larger problem here is that government finances are already in a hole; that would be a problem even if the tax cut were the best-designed in history
Here's a selection of Business Standard opinion pieces for the day
As the RBI has de-emphasised the concept of real policy rates, forecasting the terminal rate has become more difficult, says Samiran Chakrabarty
Inflation to stay within 4% target, say economists
Inflation in food articles rose to 7.67 per cent during the month as against 6.15 per cent in July mainly on account of rise in prices of vegetables and protein-rich items
CPI-based inflation for first half of the next fiscal, beginning April 2020, has been projected at 3.6 per cent
He said banks have taken this stance despite financial markets, on which they depend for money, moving in tandem with the RBI actions and fully absorbing them rate cuts
If the RBI does cut rates in October and early next year it will be the most aggressive amongst major central banks in easing policy