Expectations on Repo Rate Cut
The Reserve Bank of India left its benchmark repo rate at 6.75 percent during the meeting held on February 2nd, as expected. Today we are expecting rate cut by 25 basis points. Interest Rate in India averaged 6.71 percent from 2000 until 2015, reaching an all time high of 14.50 percent in August of 2000 and a record low of 4.25 percent in April of 2009. Interest Rate in India is reported by the Reserve Bank of India.
Impact:
The correlation between interest rate and stock market is fairly indirect both are tend to move opposite. A decrease in the interest rate will prompt investor to move money from income generating assets such as bond market to equity market thus this rate cut will be positive for the market.
More will update soon!!
