Reserve Bank of India unexpectedly cuts Repo rate by 25bps to 6.25%, Rupee jumps

At its monetary policy meeting held today, the Reserve Bank of India (RBI), the Indian central bank, unexpectedly slashed the benchmark interest rates and switched its stance to “neutral” from “calibrated tightening” in an effort to boost the economic growth amid falling inflationary pressures.

Key Details (via Reuters):

“The monetary policy committee (MPC) cut the repo rate by 25 basis points to 6.25 percent, as predicted by only 21 of 65 analysts polled by Reuters. Most polled respondents had expected the central bank to only change the stance, to neutral.

Four of six members of the MPC voted to cut the rates, while all six members voted for a change in the stance.”