The rupee and 10-year gilt prices gained on Thursday after the Reserve Bank of India unexpectedly cut the repo rate and dropped its policy stance to ‘neutral’ from ‘calibrated tightening’. The RBI reduced the repurchase rate by 25 basis points, the first cut since August 2017. Only 11 of 43 economists in a Bloomberg survey predicted the cut, with the remainder expecting no change. At 12.07 pm, the rupee was trading at 71.45 to a dollar, up 0.16% from its previous close of 71.56. The rupee has declined 2.5% this year, as foreign investors bought $69 million in the equity and sold $633.90 million in the debt market.

Source: Mint February 07, 2019 07:22 UTC