RBI out a short while ago with the expected decision
- repi rate 6.75%
- cash reserve ratio 4.0%
- reverse repo rate 5.75%
RBI statement:
- will use space for further accommodation when available while keeping focus on lowering inflation to 5% by March 2017
- uptick in inflation warrants attention
Rising inflation? There's a queue of central banks with noses pressed against the glass in envy
- RBI focussing on transmission of past rate cuts
- economic growth projection kept unchanged at 7.4% for 2015-16 with "mild" downside bias
- size and quality of fiscal gap matters
- Indian markets should stabilize after any Fed rate hike