More EM central banks to join rate-cutting party
The Reserve Bank of India (RBI) surprised the market with a larger-than-expected 50bp cut to its policy rate to 6.75% at its scheduled meeting on Monday. This should perhaps not have come as such a surprise given the collapse in WPI and CPI-inflation, resilient rupee nominal effective exchange rate and regional and global growth slowdown, not to mention the Fed’s recent decision to delay its hiking cycle once again. Read more