India Wants To Be The King Of Global Economic Growth

At present, the Central Bank of the world has been cutting interest rates, and since the beginning of the year, the Central Bank of the global interest rate easing and easing policy has reached nearly 20, covering more than 50% of the world's population.

Against this background, the Central Bank of India has cut interest rates twice in an attempt to stimulate economic growth and achieve inflation targets.

Meanwhile, the India government and the central bank have been making frequent moves to announce the new fiscal year budget and make structural adjustments to the current monetary policy, aiming to achieve the goal of economic growth of 8%, and look forward to becoming the fastest growing country in the global economy in 2015.

Yesterday, the Central Bank of India unexpectedly lowered the repo rate by 25 basis points to 7.5%.

At the same time, the reverse repo rate will be reduced by 25 basis points to 6.5%, and the cash reserve requirement rate (CRR) will remain unchanged at 4%.

This is the second time this year the Central Bank of India has announced a rate cut.

In January 15th, the Central Bank of India made no sign of reducing the repo rate by 25 basis points to 7.75%, the first rate cut since May 2013.

The Central Bank of India said that the main motive of the two rate cut was to stimulate economic growth, while preventing signs of slowing inflation.

Analysts pointed out that yesterday's

The decision to make the market very surprised, because in March 3rd, India central bank governor Ragrama Rajan (RaghuramRajan) also said that the India central bank will not cut interest rates too quickly, which will cause a sudden outflow of capital, and may lead to high inflation.

"Seeking further monetary policy adjustments depends on

And this interest rate decision is determined by data. "

Rajan explained the decision to cut interest rates unexpectedly.

In the context of the global economic slowdown and the persistent low level of international crude oil prices, the Central Bank of India, which has been beset by high inflation, began to worry about the risk of excessive inflation.

SubhadaRao, chief economist at India commercial bank, said that India's central bank's inflation target of 6% in January 2016 was hard to reach.

"We expect the basic rate cut target to be 50 basis points.

But if commodity prices continue to remain low, there is room for 25 more base points to fall. "

SubhadaRao said.

Morgan Stanley Asia economist ChetanAhya expects the India central bank to cut interest rates even more.

"We still believe that the Central Bank of India will reduce the benchmark interest rate by 125 basis points by the end of 2015," he said.

With the advent of the new budget, investors will turn to the more critical new policy reforms of the government.

In fact, the Central Bank of India was not the only central bank to cut interest rates yesterday. The Central Bank of Poland also unexpectedly lowered its key interest rate by 50 basis points to a historical low of 1.50%.

The market expected to cut interest rates by 25 basis points.

Switzerland, January

After the unexpected rate cut and abandonment of the euro's lower limit on the Swiss Franc exchange rate, Poland central bank governor MarekBelka has said that Poland has room to cut interest rates, but it is best to wait until the foreign exchange market stabilizes before making a decision.

The market turmoil is not a good time to cut interest rates.

Since last year, more than 20 central banks have announced interest rate cuts to deal with the economic risks faced by the collapse of the oil price.

Since 2015, the Swiss central bank, the Bank of Canada, the Central Bank of Singapore and the Danish Central Bank have joined the interest rate cuts. The Danish Central Bank has cut interest rates for the 4 time in a row.

It is worth noting that in February 28th, the Central Bank of China announced a two degree cut in less than 4 months, the last time it was November 21st last year.