India’s Central Bank Reserve Bank of India announced on 6th August the IIIrd Bi-Monthly Monetary Policy wherein they announced an array of conventional and unconventional measures to boost slowing economic growth, including reducing the benchmark interest rate by an irregular 35 basis points (bps), its fourth rate cut this year. The Reserve Bank of India’s six-member rate-setting…
Lowering leverage ratio threshold can offer leeway to expand balance sheet of banks. Lowering Leverage Ratio allows some leeway for banks to take additional exposure (vis-à-vis capital) and expand their balance sheets.
India is becoming the gold standard for monetary policy in Asia, if not the world. Reserve Bank of India has been very consistent in its message: Borrowing costs need to come down to juice growth. Passive inflation and the central bank’s full tank of gas make the case to cut even stronger.