Economist

Richard Iley

Macroeconomics

Reserve Bank of India's (RBI) 6-berth Monetary Policy Committee (MPC) trimmed its key policy rate - the repo rate - by 25bp to 6% as had been largely expected yesterday; its first policy move since last October. But the decision to re-engage with rate cuts however is unlikely to mark the start of a series of further eases. Importantly, the MPC maintained a neutral bias after the decision, indicating no tilt to policy moving forward. Notably, the MPC is increasingly divided. Ravindra Dholakia -…

Reserve Bank of India's (RBI) 6-berth Monetary Policy Committee (MPC) trimmed its key policy rate - the repo rate - by 25bp to 6% as had been largely expected yesterday; its first policy move since last October. But the decision to re-engage with rate cuts however is unlikely to mark the start of a series of further eases. Importantly, the MPC maintained a neutral bias after the decision, indicating no tilt to policy moving forward. Notably, the MPC is increasingly divided. Ravindra Dholakia -…

RBI: Curb Your Enthusiasm