India First Rate Cut In 3 Years

17 April 2012 14:30 - Jack Stupple

Email Article Print Article

India First Rate Cut In 3 Years

The Reserve Bank of India cut its key interest rate by 0.5% today, the first cut in three years. India’s central bank cut its policy repo rate to 8% from 8.5% in a move that was bigger than expected.

The bank made the move to give boost to flagging economic growth and warned that there is limited scope for further cuts. This reduction in the rate has been prompted by deceleration and growth and softening inflation. The bank also warned that India’s current account deficit which widened to 4.3% of GDP in the last quarter of 2011 is unsustainable and will be difficult to finance given predictions of lower capital flows to emerging markets in 2012.  The RBI has predicted the GDP growth rate for 2012-13 will be 7.4% and it expects the rate to be 6.9% in 2012-12.

The cut is aimed at spurring growth to 9% levels which were seen before the global financial crisis in 2008. The Reserve Bank governor, Duvvuri Subbarao said, “The reduction in the repo rate is based on an assessment of growth having slowed below its post trend crisis, which, in turn, is contributing to the moderation of core inflation.”


Related Links:
• Reserve Bank of India
India's central bank
• Latest News
Regular News Updates
• Economic Calendar
Scheduled economic events


Compare Foreign Exchange and Currency >>

Compare Loan and Debt Products >>

Compare Cards Products >>

Compare Money Products >>

Compare Insurance Products >>

When the planning starts for that special day in everyone's lives , There is always the worry and stress of how much strain it is going to put on your financial situation . Marriage loans are helping lots of people to ease this stress.
08 August 2015
Which Way To Pay
Marriage loans have been introduced to help prepare for the expense you will incur when celebration the most special day of everyone's life.
As everyone wants that big day to be perfect , there is also a hefty cost that comes with it .
14 May 2015
Which Way To Pay
Marriage isn't a cheap affair that's why Marriage loans have proven so popular across India.
Everyone want the best education , But financially this can be a worry
07 October 2014
Which Way To Pay
Getting the best education is the main priority in most people's lifetime.