SMM4 4: just the news, the Bank of India cut interest rates again! This is the second time the Reserve Bank of India has cut interest rates by 25 basis points in 2019, compared with a current interest rate of 6 per cent. As early as February 7, the Bank of India was ahead of the world in the first round of interest rate cuts. On February 15th Egypt's central bank slashed interest rates by 100 basis points.
The central bank's rate cut did not exceed market expectations. India's inflation rate, which stood at 2.57 per cent in February, has been below the central bank's medium-term inflation target of 4 per cent for eight months in a row and is expected to remain below 3 per cent in March, giving the central bank good reason to cut interest rates. In addition, India's economic growth rate in the fourth quarter of last year was only 6.6 percent, the lowest level for the whole of last year. This year's economic growth situation is also not optimistic, and automobile consumption and industrial production are all facing a pullback. Coupled with the fact that India will hold general elections in April and May this year, the stability of economic growth is particularly important, so the interest rate cut is in line with market expectations, and more central banks are expected to join the cut in the future.