Arab Today, arab today india cuts rates to spur growth
Last Updated : GMT 02:34:15
Arab Today, arab today
Arab Today, arab today

India cuts rates to spur growth

Arab Today, arab today

Arab Today, arab today India cuts rates to spur growth

Abu Dhabi - AFP

India\'s central bank cut its main interest rates by 50 basis points on Tuesday - its first reduction in three years - but said there was limited scope for further easing. The Reserve Bank of India (RBI) said the benchmark repo rate, at which it lends to commercial banks, would fall to 8.0 percent and the reverse repo rate, which it pays banks for deposits, would fall to 7.0 percent. \"We expect a 25-basis point cut,\" said Siddhartha Sanyal, chief India economist at Barclays Capital had said earlier. \"The central bank will rebalance its priorities somewhat to boost growth, while not completely letting go of its anti-inflationary stance,\" he said. The central bank\'s policymakers were due to announce their decision at around 0530 GMT. Emerging market nations have been cutting rates to bolster expansion and shield their economies from Europe\'s sovereign debt crisis as well as the weakened US economy and to offset a slowdown in China. But Asia\'s third-largest economy has kept rates at their highest level since 2008 to tame inflation, which has caused huge hardship to India\'s hundreds of millions of poor and is a political tripwire in the nation of 1.2 billion people. The rate rises have subdued inflation that was near double-digits for most of last year and now policymakers\' attention is focused on the slowing economy. India\'s industrial output grew in February by a lower-than-expected 4.1 percent after expanding by just 1.1 percent in January, data last week showed. The central bank hiked interest rates 13 times from March 2010, undertaking the most aggressive monetary policy tightening drive of all major economies, and it has kept rates on hold since late last year. In a preliminary step to loosen monetary policy, the bank has twice reduced since the start of 2012 the amount of cash commercial banks must keep in reserve to a bid to boost lending and spur growth. The government expects growth to improve in the new fiscal year which started April 1, targeted at 7.6 percent, but this is still far below the eight-to nine-percent growth for much of the past decade. India\'s slowing growth comes as the Congress party-led government, battered by a string of graft scandals, has been under heavy financial market pressure to curb public spending and rein in a ballooning deficit. But concerns about volatile global crude oil prices and a weak rupee remain, which means that the Reserve Bank of India will have to tread cautiously in lowering rates as it seeks to bolster the economy, economists said. Analysts added that the country\'s inflation battle was far from won. \"India still has an inflation problem and is likely to have an inflation problem for the rest of 2012,\" said Moody\'s Analytics senior economist Glenn Levine.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india cuts rates to spur growth Arab Today, arab today india cuts rates to spur growth

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday