India: Little more than expected delivered in monetary policy – ANZ

ANZ analysts note that the Reserve Bank of India (RBI) cut the policy repo rate by 35bps to 5.40% today, keeping the accommodative stance unchanged.

Key Quotes

“The MPC’s vote was unanimous with four members voting in favour of a 35bp cut versus two who are in favour of a 25bp cut.”

“Growth projections were revised downwards while inflation forecasts remain benign.”

“The cut reiterates the RBI’s commitment to sustaining a dovish monetary policy. We therefore, retain our stance of a further 50bp of cuts from here on.”