India - Tasa de Interés

The Reserve Bank of India lowered its benchmark repo rate by 25 bps to 5.15 percent during its October meeting, as widely expected. This was the fifth straight rate cut so far this year, in an attempt to boost slowing economic growth. Also, the RBI lowered its GDP forecast to 6.1 percent for 2019/20 from 6.9 percent previously estimated; while inflation outlook was revised upwards to 3.4 percent from 3.1 percent.

The Reserve Bank of India lowered its benchmark repo rate by 35 bps to 5.40 percent during its August meeting, while markets had forecast a smaller 25bps cut. This was the fourth straight rate cut so far this year, in an attempt to boost economic growth while the inflation outlook remains benign. Also, the RBI lowered its growth forecast to 6.9 percent for 2019/20 from 7.0 percent previously estimated; and inflation was projected at 3.4-3.7 percent for the second half of fiscal 2019-20.

The Reserve Bank of India lowered its policy interest rate by 25bps to 5.75 percent during its June meeting and changed its monetary policy stance to "accommodative" from "neutral". It was the third straight interest rate cut so far this year, as policymakers voiced concerns about the sharp slowdown in investment activity along with a continuing moderation in private consumption growth. The economy grew by 5.8 percent in the fourth quarter of 2018-19 fiscal year, the slowest pace in more than four years. Also, the RBI lowered its growth forecast to 7 percent for 2019/20 from 7.2 percent previously estimated; and raised its retail inflation outlook for the first half of fiscal 2019-20 to a range of 3 percent to 3.1 percent from a range of 2.9 percent to 3 percent.

The Reserve Bank of India lowered its benchmark interest rate by 25bps to 6.0 percent on April 4th, as widely expected. It is the second rate cut so far this year. Policymakers said that the decision is consistent with the objective of achieving the medium-term target of 4 percent (+/- 2 percent) while supporting growth. The Committee noted that the output gap remains negative and the domestic economy is facing headwinds. The reverse repo rate was also lowered by 25bps to 5.75 percent and the marginal standing facility rate and the Bank Rate to 6.25 percent.

The Reserve Bank of India lowered unexpectedly its benchmark interest rate by 25bps to 6.25 percent on February 7th and shifted its stance to "neutral" in an attempt to boost a slowing economy as inflation rate remains well below its mid-point target of 4 percent. The central bank also released its bi-monthly review of the economy, where it forecast India's economy will expand 7.4 percent in 2019-20, up from 7.2 percent in this fiscal year.