India Bonds Rally After Central Bank Holds Rates in Surprise Move
- Sensex enters correction, rupee falls past 74/USD to new low
- Rupee’s decline moderate versus emerging peers: RBI Governor
This article is for subscribers only.
India’s rupee declined and stocks entered a correction after the central bank kept interest rates unchanged, surprising investors who expected the authority to step up its defense of Asia’s worst-performing major currency.
The Reserve Bank of India held the repurchase rate at 6.5 percent, a decision forecast by just nine of 49 economists in a Bloomberg survey, and changed its stance to “calibrated tightening” from neutral, signaling more increases lie ahead.