Will US Fed induce a dovish Raghuram Rajan at RBI?
Raghuram Rajan could begin easing policy from today...
Raghuram Rajan's RBI springs surprise, raises repo rate 25 bps, says 'inflation worrisome'
Reuters | Updated: Sep 20 2013, 11:21 IST
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Raghuram
Rajan's RBI sparang a surprise on tehw orld and turned continued with D
Subbarao's hawkish policies by raising rates. Reuters
SummaryRBI raises short-term lending (repo) rate by 0.25 per cent to 7.5 per cent.
* RBI raises short-term lending (repo) rate by 0.25 per cent to 7.5 per cent.
* RBI reduces borrowing rate for banks (MSF) by 0.75 per cent to 9.5 per cent.
* RBI eases minimum daily liquidity maintenance of cash reserve ratio (CRR) to 95 per cent from 99 per cent.
* Inflation worrisome, there is no room for complacency: RBI.
RBI was expected to keep rates on hold on Friday as it battles to stabilise the Indian rupee and keep inflation anchored. However, with Raghuram Rajan donning the 'gamechanger' mantle, much was expected from him, especially after the 'hawkish policies followed by his predecessor D Subbarao.
The U.S. Federal Reserve's decision to stick to its monthly bond purchase programme is likely to provide some relief to Governor Raghuram Rajan as he unveils his first monetary policy review and has led to hopes that the central bank may ease some of the earlier cash-tightening steps.
A Reuters poll held before the Fed decision expects the central bank to keep the repo rate and the cash reserve unchanged.
