{"id":35919,"date":"2018-11-01T12:17:48","date_gmt":"2018-11-01T06:47:48","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35919"},"modified":"2018-11-01T12:17:48","modified_gmt":"2018-11-01T06:47:48","slug":"rbi-may-cut-key-interest-rate-by-25-basis-points","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-may-cut-key-interest-rate-by-25-basis-points\/","title":{"rendered":"RBI may cut key interest rate by 25 basis points:"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/rbi-may-cut-key-interest-rate-by-25-basis-points\/article19393088.ece\"><span style=\"font-weight: 400;\">RBI may cut key interest rate by 25 basis points<\/span><\/a><span style=\"font-weight: 400;\">:<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Amidst softening of inflation data over the last two months, the global finance financial service firm Morgan Stanley is expecting a 25 basis point reduction in policy rates during the upcoming meeting of the Reserve Bank of India\u2019s (RBI) monetary policy committee next week.<\/span><\/p>\n<p><b>Introduction:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The Reserve Bank of India (RBI) is expected to reduce the key policy rate or the repo rate by 25 basis points (bps) to 6% in its monetary policy review meeting scheduled for August 2 while maintaining neutral stance on interest rates.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">According to Morgan Stanley, there will be limited scope for the RBI to go for more rates cuts in the backdrop of global central banks planning to further tighten their balance sheets.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Expectation is \u00a0mainly due to fall in retail inflation, which eased to 1.54% in June<\/span><\/li>\n<li><span style=\"font-weight: 400;\">If the RBI does cut the repo rate, this could only be the second such instance by the monetary policy committee (MPC) since it was established in October 2016.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Inflation for June was lower than the RBI\u2019s target band of 2-6%.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">During the last policy review in June, the RBI revised its inflation projection downwards to 2-3.5% in the first half of the year and 3.5-4.5% in the second half-opening up the possibility of a rate reduction.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The earlier projection for retail inflation in the first half of the fiscal was 4.5% and 5% in the second half.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Asian Development Bank\u2019s latest estimate puts India\u2019s average inflation in fiscal year 2018 at 4%, some 70 basis points lower than its estimate at the beginning of the year.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Inflation based on the wholesale price index, or WPI, slipped to an 11-month low of 0.9% in June, with food inflation remaining negative and prices of manufactured items rising at a weak pace. Wholesale inflation has been on a downward trend since February<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Wholesale Price Index also eased to 0.9 per cent from 2.17 %.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>RBI may cut key interest rate by 25 basis points: Context: Amidst softening of inflation data over the last two months, the global finance financial service firm Morgan Stanley is expecting a 25 basis point reduction in policy rates during the upcoming meeting of the Reserve Bank of India\u2019s (RBI) monetary policy committee next week.&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-may-cut-key-interest-rate-by-25-basis-points\/\">Continue reading <span class=\"screen-reader-text\">RBI may cut key interest rate by 25 basis points:<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35919","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704844155},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35919"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35919\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}