India just added to the 650 interest rate cuts since the financial crisis
REUTERS/Eduardo Munoz
The cut is the fifth by the bank since the start of 2015, and had been widely expected by economists, but still adds to the huge number of cuts in interest rates since the financial crisis.
Last week, a chart from JP Morgan Asset Management's Alex Dryden, first reported by the Financial Times, showed that central banks have cut more than 650 times since 2008. Amongst the latest nations to cut are Norway, which dropped rates to just 0.5% in March, and said it could negative.
Speaking about the cut, the RBI's governor Raghuram Rajan left room for more cuts in the country's rate, saying:
The stance of monetary policy will remain accommodative. The Reserve Bank will continue to watch macroeconomic and financial developments in the months ahead with a view to responding with further policy action as space opens up.
At the same time as the announcement of the central rate cut, the RBI also left its cash reserve rate unchanged at 4%, and upped its reverse repo rate to 6% from 5.75%.
Earlier on Tuesday, Australia's Reserve Bank left its base rate unchanged at 2%.
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Why did a NASA spacecraft suddenly start talking gibberish after more than 45 years of operation? What fixed it?
- ICICI Bank shares climb nearly 5% after Q4 earnings; mcap soars by ₹36,555.4 crore
- Markets rebound sharply on buying in bank stocks firm global trends
- Bengaluru's rental income highest in Q1-2024, Mumbai next: Anarock report
- Rupee falls 10 paise to settle at 83.48 against US dollar
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market