Indian Central Bank Cuts Policy Rate to 6.5%; Raises Reverse Repo

India’s central bank cut its repo rate by 25 basis points to 6.50 percent at a policy review on Tuesday, making a widely expected first reduction since September to bring the rate to its lowest in more than five years.

But in a surprise move, the Reserve Bank of India also raised the reverse repo — or the rate lenders charge to the central bank — by 25 basis points to 6.0 percent, while taking measures to ensure more availability of cash in the banking system.

CNBC

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam