The Reserve Bank of India has decided to cut its key interest rate by a quarter percentage point on Tuesday to further boost its economy.
India’s central bank lowered the repurchase rate to 6.25% from 6.50%, the lowest level for nearly six years and the first rate decision since Urjit Patel came into power.
The RBI stated that the decision is aligned with the objective of achieving the 5% consumer price index inflation by the last quarter of 2016-2017.
The rupee jumped to 66.47 from 66.40 against the dollar while its main index, the NSE Fifty, was up 0.3%.
The Reserve Bank of Australia kept its interest rates steady after the bank did not find any conditional easing bias at its October monetary policy meeting yesterday.
The central bank left the key interest rates unchanged at 1.50%, after cutting it last April and August, as new RBA governor Philip Lowe believed that the decision would be consistent with the country’s goal to achieve inflation target and economic growth.
With the announcement, the Australian dollar tumbled against its US counterpart and was last trading at .7664, lower than its previous close of .7680.
Sterling logged to its dismal lows against the US dollar and the euro on Tuesday trading as fears on ‘hard Brexit’ resurfaced.
The British pound tumbled 1.7% on Sunday on Prime Minister Theresa May’s announcement that Britain’s formal process out of the EU will kick off by March 2017.
And on Tuesday, the sterling recorded its 31-year low against the US dollar as it closed 0.9% down at 1.2729. The lowest record was at 1.05 in 1985. It also weakened against the euro at 1.1376, its lowest level since 2011.
Russia’s headline inflation slid to 6.4% year-over-year in September, the lowest since February 2014 and below economists’ expectation of 6.6%.
But an economist believed that the fall in inflation would not have any impact on the outlook of the monetary policy and open the door for a rate cuts in the next two years.The Russian ruble lost ground against the US dollar and closed at 62.4829.