Dec 5 (Reuters) – The Reserve Bank of India (RBI) cut its key repo rate by 25 basis points on Friday, in line with a consensus view, as record low retail inflation and a benign outlook for prices provided ample room to further support economic growth.
The monetary policy committee has now cut the repo rate by a total of 125 basis points since February to 5.25%. It held rates in August and October.
COMMENTARY:
TERESA JOHN, LEAD ECONOMIST, NIRMAL BANG, MUMBAI
“The 25bps rate cut, along with liquidity measures, will help keep bond yields in check and help sustain the momentum in the economy.”
UPASNA BHARDWAJ, CHIEF ECONOMIST, KOTAK MAHINDRA BANK, MUMBAI
“The repo rate cut, along with liquidity easing measures, announced by the RBI is exactly in line with our expectations.”
“With RBI continuing to leave room open for further easing, we do not rule out another 25bps cut, with the likely terminal rate at 5% followed by a prolonged pause.”
(Reporting by Manvi Pant and Ananta Agarwal, compiled by Dhanya Skariachan, Editing by Harikrishnan Nair)
