Economics
India Central Bank Pledges More Easing as Economy Set to Shrink
- Central bank lowers repo rate by 40bps in unscheduled meeting
- Moratorium on bank loans extended by another three months
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India’s central bank cut interest rates in an unscheduled announcement on Friday and kept the door open for further easing to help an economy it expects will contract for the first time in more than four decades.
Governor Shaktikanta Das reduced the benchmark repurchase rate by 40 basis points to 4%, the lowest since the measure was introduced in 2000, and pledged to take “whatever measures are necessary” to support the economy. The monetary policy committee, which met ahead of its scheduled meeting in early June, retained its “accommodative” stance, implying it could ease policy further.