Reserve Bank of India Holds Rate at 7.75%

The Reserve Bank of India (RBI) has opted to refrain from further monetary easing, after surprising markets with a mid-January rate cut.
The RBI on Tuesday kept its key repo rate at 7.75 percent, after lowering rates by a quarter-point three weeks ago.

The decision was widely expected on the basis of no new data on India’s inflationary environment since the last central bank meeting. Many analysts also expected the central bank to wait for the release of the budget due end of February to gauge the government’s commitment to fiscal consolidation and reforms.
Instead, the Reserve Bank of India cut the statutory liquidity ratio (SLR) – or the amount of bonds that lenders must set aside – by 50 basis points to 21.5 percent of deposits from the two-week cycle starting on Feb. 7 in a bid to spur banks to inject more credit into the economy.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza