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Who Says Rate Moves Need To Be 25 Basis Points? Not RBI Governor

Who Says Rate Moves Need To Be 25 Basis Points? Not RBI Governor


“If easing of monetary policy is required but the central bank prefers to be cautious in its accommodation, a 10 basis points reduction in the policy rate would perhaps communicate the intent of authorities more clearly than two separate moves –- one on the policy rate, wasting 15 basis points of valuable rate action to rounding off, and the other on the stance, which in a sense, binds future policy action to a pre-committed direction,” he said.



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