Rupee rises, bond yields decline on RBI rate easing

NEW DELHI: The rupee climbed nearly 15 paise on Thursday and the 10-year bond yields declined 0.56 per cent after RBI's Monetary Policy Committee (MPC) lowered the repo rate by 25 basis points to 6.25 per cent at the central bank's sixth bi-monthly policy review.

The rupee had depreciated 20 paise to 71.76 in early trade today.

The MPC also changed the policy stance to ‘neutral’ from ‘calibrated tightening’.


RBI has projected retail inflation or CPI at 2.4 per cent for the January-March quarter of 2019 and 3.2-3.4 per cent for April-September 2019.

The FY20 GDP, as per the central bank, may come in at 7.4 per cent. The outlook on growth and inflation seems to have given the Indian currency a fillip.

"The monetary policy support along with the fiscal stimuli of Rs 1 lakh crore in the Union Budget comes as a booster dose for the economy," said Gaurav Dua, Head of Research, Sharekhan by BNP Paribas.