RBI out a short while ago with the expected decision

  • repi rate 6.75%
  • cash reserve ratio 4.0%
  • reverse repo rate 5.75%

RBI statement:

  • will use space for further accommodation when available while keeping focus on lowering inflation to 5% by March 2017
  • uptick in inflation warrants attention

Rising inflation? There's a queue of central banks with noses pressed against the glass in envy

  • RBI focussing on transmission of past rate cuts
  • economic growth projection kept unchanged at 7.4% for 2015-16 with "mild" downside bias
  • size and quality of fiscal gap matters
  • Indian markets should stabilize after any Fed rate hike