The bank also raised its headline inflation projection for the second half of the financial year to between 5.1% and 4.9%
The Indian economy is growing well below the pace needed to generate enough jobs for the millions entering the labour market each monthDaily wage labourers distribute earnings among themselves while waiting for work on a street in New Delhi on December 5 2019. Picture: AFP/PRAKASH SINGH
“I cannot remember the last time there has been such a resounding surprise as far as the RBI decision is concerned. It defies the expectation of the market and also the body language of the central bank over the past six months,” said Taimur Baig, chief economist at DBS Group Research.Many economists and analysts have lately begun to argue that rate cuts alone will do little to revive growth
The central bank also raised its headline inflation projection for the second half of the ongoing financial year to between 5.1% and 4.9%, from an earlier forecast of between 3.5% and 3.7%. Equity markets fell after the decision and were choppy throughout the rest of the session. The broader Nifty share index closed down 0.2%.
Annual retail inflation rose to 4.62% in November, climbing above the midpoint of the RBI’s target range of 2%-6% for the first time in 15 months.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
LOANE SHARP: Reserve Bank’s divorce from reality feeds on itselfUnder Lesetja Kganyago, growth and inflation have dropped but, unfathomably, real interest rates have risen
Read more »
JSE could follow positive Asian markets on ThursdayInvestors cling to hopes of a partial US-China deal, while expectations are rising that the Federal Reserve will cut rates
Read more »
Rand gains as trade deal prospects lift sentimentCurrent-account data for the third quarter is expected to be released by the Reserve Bank on Thursday
Read more »
Arqaam closing office, joining other brokers paring back in SAMacquarie Group, Deutsche Bank, Credit Suisse and Citigroup are all cutting back operations in the country
Read more »
Market data — December 4 2019Market data including bonds, unit trusts and fuel prices
Read more »
Debt relief law passes constitutional muster, says Ebrahim PatelThe banking industry had petitioned the president not to sign the bill in its current form
Read more »