RBI's Next Move Too Close to Call


The Reserve Bank of India’s next policy move will be a “very close call” with economists split over whether the central bank will cut interest rates for the third time in four months when it meets on Tuesday.

Governor Raghuram Rajan has kept markets on their toes this year, with two off-cycle rate cuts in January and March totaling 50 basis points. The benchmark repo rate currently stands at 7.5 percent.

While the RBI prefers front-loading policy easing, recent inflation developments complicate things, said Devika Mehndiratta, senior economist, South Asia & ASEAN at ANZ.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD consolidates gains below 1.0700 amid upbeat mood

EUR/USD consolidates gains below 1.0700 amid upbeat mood

EUR/USD is consolidating its recovery below 1.0700 in the European session on Thursday. The US Dollar holds its corrective decline amid improving market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap. 

EUR/USD News

GBP/USD clings to moderate gains above 1.2450 on US Dollar weakness

GBP/USD clings to moderate gains above 1.2450 on US Dollar weakness

GBP/USD is clinging to recovery gains above 1.2450 in European trading on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak. 

GBP/USD News

Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions

Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions

Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns. 

Gold News

Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court

Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court

Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row. 

Read more

Have we seen the extent of the Fed rate repricing?

Have we seen the extent of the Fed rate repricing?

Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.

Read more

Majors

Cryptocurrencies

Signatures