India's central bank on Friday cut its benchmark repurchase rate for the fifth consecutive time this year as it continues a concerted push to reinvigorate a stuttering economy.
"In the event, the RBI's decision to deliver a more benign 25 basis point rate cut suggests it is trying to balance growth concerns against limited remaining monetary policy space and a diminishing efficacy of monetary policy in boosting growth ," Nomura Chief India Economist Sonal Varma said in a note Friday
Nomura analysts suggested that given the weaker-than-expected growth outlook, a "front-loaded" policy action would have been the correct approach, enabling banks to sharply lower their lending rates ahead of the festive season. "One possible reason for this constraint is the health of India's banking and financial sectors, which remains weak," said Shumita Deveshwar, director of India research at TS Lombard.
The problems with bank governance have led to a credit slowdown which has exacerbated the wider economic headwinds, Deveshwar said in a note Monday.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Disney's Star India Network Sets Season 2 of 'TED Talks India' Hosted by Shah Rukh KhanThe show will air on the network's channels, including Star Plus, Nat Geo and Star World, in addition to its digital platform Hotstar.
Weiterlesen »
US-India trade deal is good for global growth, says the World Economic ForumA trade deal between the U.S. and India will be positive for global growth, said Borge Brende, president of the World Economic Forum.
Weiterlesen »
India protectionist, but U.S. negotiating limited trade deal: RossThe United States does not believe that India is eligible for the grant of a spe...
Weiterlesen »
India-Pakistan nuclear war could kill 100 million, trigger global coolingThe year is 2025 and militants have attacked India&39;s parliament, killing most of its leaders. New Delhi retaliates by sending tanks into the part of Kashmir controlled by Pakistan. Fearing it will be overrun, Islamabad hits the invading forces with its battlefield nuclear weapons, triggering an
Weiterlesen »
India Prime Minister Narendra Modi says all Indian villages now have latrine access, but experts disagreeIndia Prime Minister Narendra Modi said Wednesday that all Indians have access to toilets, but experts don't agree with his claims.
Weiterlesen »
Today is the 150th anniversary of Gandhi's birthday, and it's a national holiday in IndiaMahatma Gandhi, known in India as 'the father of the nation,' was born 150 years ago today, on October 2, 1869. His birthday is a major national holiday called Gandhi Jayanti, and it is marked with a prayer for peace, ceremonies and events throughout the country.
Weiterlesen »