The 6-member Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted to hold the key repo rate at 5.15% and reverse repo rate at 4.90%
GDP growth forecast for FY20 has been revised downwards from 6.1 per cent in the October policy to 5 per cent
Here's a selection of Business Standard Opinion pieces for the day
The gap between lending rates and RBI's repo rate has reached levels only seen in crises
The six-member Monetary Policy Committee (MPC) cut the repo rate by 25 basis points to 5.15 per cent
The policy decision will be announced at 11:45 a.m. in Mumbai, followed by a press conference 15 minutes later by Das
Rating agency Moody's Investor Services has already warned that the move would be credit negative for banks, causing volatility in net interest margins
The government's own assessment is that the lack of available credit is the worst in over 70 years
Current situation may not allow banks to significantly tinker with deposit rates making it tough to fully pass on the fall in repo rate
What is telling is that large swings in the Indian business cycle are still not a thing of the past, despite the adoption of inflation targeting in India
Shaktikanta Das likely to initiate required steps in coming weeks
Whilst the noise on feasibility of budget numbers and risks on sovereign borrowing would persist in the near term, the budget outcome has certainly eased the job for RBI MPC to ease rates further
Numbers are paramount, what our assessment of the incoming data is, and how we see the incoming data, Das said
After back-to-back rate cuts, RBI could pause in the October policy but then deliver a 25-bp rate cut in the December policy after July-September GDP data are out in November-end
The Reserve Bank of India's (RBI) Monetary Policy Committee on Wednesday cut the interest rate by 35 basis points -- the fourth successive reduction -- to a nine-year-low level
Confidence-building measures from the government are essential to boost the sentiments of the investors
RBI alone will not be able drive economic recovery
The RBI expects inflation to go up to between 5.1-5.6 per cent in the first half of the next fiscal or the April-September period, before cooling down