RBI Gov. Das: Change in policy stance as good as additional 25-bps rate cut

In an interview with Bloomberg published on Monday, the Reserve Bank of India’s (RBI) Governor Shaktikanta Das noted that the shift in the central bank’s stance to ‘accommodative’, itself suggest an additional 25bps rate cut, as cited by Reuters.

Key Quotes:

We have reduced policy rates by 75 bps and we have shifted to accommodative. And shifting of the stance to accommodative itself means a rate cut of 25 bps at least.

Future policy decisions will depend on incoming data, particularly inflation.

The Indian Rupee remains unimpressed by Governor Das’ comments, with USD/INR back above the 69 handle amid rising oil prices and broad-based US dollar strength.