Reserve Bank of India
October 4, 2017
The Indian repo rate was left at 6.0% by a 5-1 vote, with one dissenter favoring a cut of 25 basis points. At the previous meeting in early August, the rate had been sliced by 25 basis points. The rate previously was reduced by 50 basis points in two moves during 2016 and by a total of 125 basis points from 8.0% in 2015. The Monetary Policy Committee did elect to cut the proportion of deposits that lenders must invest in government notes and other specified securities, and projected inflation was bumped a bit upward in spite of a marginal downward revision to the GDP growth forecast. In view of softer-than-expected growth during the first half of this year, some in the market had been hoping for a rate cut.
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