The Reserve Bank of India (RBI) reduced the repo rate by 0.25% to 6.50% in its April review, marking a more than five-year low. Since January 2015, th...
Question
The Reserve Bank of India (RBI) reduced the repo rate by 0.25% to 6.50% in its April review, marking a more than five-year low. Since January 2015, the repo rate has been cut by a total of 150 basis points (1.5%). Market participants are awaiting possible revisions in GDP growth forecasts, inflation targets for FY17, and RBI's commentary on foreign exchange reserves, especially as about $30 billion of foreign currency non-resident bank deposits mature in September.
Which of the following statements contradicts the RBI's recent rate cut actions?