Money in India
India - Money
Reserve Bank of India cuts rates again in April
As widely expected by market analysts, the Reserve Bank of India’s Monetary Policy Committee (MPC) cut all monetary policy rates by 0.25 percentage points at its 2–3 April meeting, reducing the repo rate to 6.00%, the marginal standing facility to 6.25% and the reverse repurchase rate to 5.75%. This decision was supported by four of the six MPC members, with the remaining two members voting to keep rates unchanged. The MPC also voted by a majority to maintain the current monetary policy stance as “neutral”.
April’s monetary policy decision was heavily influenced by inflation considerations. In February, although consumer price inflation accelerated to 2.6% from 2.0% in January, it remained close to the lower bound of the MPC’s target range of 2.0% to 6.0%. Moreover, the MPC lowered its inflation forecast for April–September to 2.9%–3.0% from 3.2%–3.4%, and its forecast for October–March to 3.5%–3.8% from 3.9%. Anticipated weaker economic activity growth—reflected by the MPC cutting its GDP growth forecast for April 2019–March 2020 to 7.2%, down from 7.4%—is a key reason behind the more modest inflationary pressures that are expected in the coming months.
Analysts at Nomura said that April’s monetary policy decision was “broadly consistent with our macro view and expectations”, although they added they considered the RBI’s growth projections as “somewhat optimistic”. Reflecting on what this means for future monetary policy, Nomura analysts stated that “contained inflation amid disappointing growth should create some space for further policy easing”. The next monetary policy meeting is scheduled for 4–5 June.
Our complete range of Consensus Forecast panelists are currently updating their forecasts, and new Consensus Forecasts for interest rates will be available on 16 April.
India - Money Data
|Money (annual variation in %)||12.3||11.7||11.5||6.3||21.9|
5 years of economic forecasts for more than 30 economic indicators.
India Money Chart
Source: Reserve Bank of India and Met the why particular calculations.
|Bond Yield||7.39||-0.04 %||May 13|
|Exchange Rate||70.57||-0.09 %||May 13|
|Stock Market||37,091||-0.08 %||May 13|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
May 15, 2019
Merchandise export growth in annual terms plummeted to 0.6% in April, down from 11.0% in March.
May 14, 2019
In April, consumer prices rose 0.50% compared to the previous month and was up from 0.36% in March, primarily due to more expensive food and beverages, and housing. Consumer price inflation was unchanged at 2.9% in April, which was slightly below market analysts’ expectations of 3.0%.
May 11, 2019
Industrial production fell 0.1% in March compared to the same month a year earlier, contrasting the 0.1% growth in February and sharply undershooting market analysts’ expectations of 1.3% growth.
May 6, 2019
The composite Purchasing Managers’ Index (PMI) produced by Nikkei and IHS Market moderated to 51.7 in April from 52.7 in March, shifting closer to the 50-point threshold that separates expansion from contraction in the private sector. The services PMI decreased to 51.0 in April from 52.0 in March, which marks the weakest growth in the services sector since last September.
April 15, 2019
In March, consumer prices rose 0.36% compared to the previous month, up from 0.22% in February.