Reserve Bank of India first Asia-Pacific (APAC) central bank to begin interest rate easing cycle

Fitch Ratings has recently said in its APAC sovereign credit overview report that the Reserve Bank of India (RBI) is the first Asia-Pacific (APAC) central bank to begin interest rate easing cycle by cutting the policy rate back-to-back in the last two monetary policy reviews in 2019. The Monetary Policy Committee (MPC), headed by RBI Govenor Shaktikanta Das, cut rates in February and April, citing prospects of benign inflation. In the four months of 2019, the RBI has cut policy interest rates twice twice by 0.25% each to one-year low of 6%. Earlier in April 2019, Fitch Ratings kept India’s rating unchanged for the 13th time in a row at BBB- , which is the lowest investment grade, along with a stable outlook. The agency cited various challenges faced by the country such as high public debt, weak financial sector and lagging structural reforms.