Reserve Bank of India unexpectedly lowered main rateStaff Writer | February 8, 2017
India's central bank unexpectedly lowered its main policy rate despite a slowing economy and price pressures.
Economy in Asia Activity in India took a big hit in 2016
Consumer prices on the Subcontinent slowed to a 3.41% year-on-year clip in December, coming in well below the monetary authority's 5.0% target.
Activity in South Asia's largest economy took a big hit in 2016 after the government's controversial decision to eliminate high denomination bills from circulation, bolstering expectations for rate cuts.
Furthermore, New Delhi's new federal budget for the next fiscal year, starting on 1 April, aimed to reduce the country's fiscal deficit from 3.5% to 3.2%. ■