The Reserve Bank of India has no plans to cut the short-term repo rate for some time, a senior central bank official said on Thursday.
"The Fed's rate cut has made no difference in the monetary policy in India. The macro-economic conditions in India still do not warrant a repo rate cut for some time," RBI deputy governor Rakesh Mohan told reporters ahead of a banking conference in Mumbai.
This is in contrast with the other Asian central banks, which were considering a reduction in their benchmarks after a rate cut by the US Federal Reserve.
The US Federal Reserve on Wednesday trimmed the Fed funds rate by a quarter point to a 45-year low of one percent and cited hopeful economic signs for not having made a deeper cut.
Local bond traders hope the Fed rate cut could induce the RBI to lower the repo rate from five per cent to moderate arbitrage-induced foreign investments.
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