Rajan indicates rate cut outside cycle

RBI Governor Raghuram Rajan’s ability to surprise the markets is well known. No wonder then that he gave indications that a rate cut between policies is not off the table for the central bank.

“We are waiting information. There was no need to move fast in the early stages of the turnaround. We would take all the information into count and decide whether at times it warrants moving in between policies. Generally early stages of the turnaround in monetary policy, there is probably more need to do that than at later stages,” Rajan said in an answer to a question on he was looking at rate cuts between policies.

“We have already been doing monetary policy announcements for some time so its more reasonable to go back to a pattern during such times but nobody ever rules out any action that the central bank can take, its one of the options that we always have,” Rajan added.