MUMBAI
\nThe Indian rupee gave up early gains on Friday after the central bank cut the interest rate by 25 basis points, in line with a consensus view that had albeit softened due to a stronger-than-expected economic growth and the currency\u2019s recent slide.
\nThe rupee fell to 89.92 after the policy decision was announced, down from 89.78 before the announcement. The rupee has declined 5% over the year so far and is Asia\u2019s worst-performing currency.
\nWeakness in trade and capital flows has bogged down the rupee this year, with the drag compounded by steep U.S. trade tariffs, pushing the currency below the 90 per dollar mark.
\nA majority of economists in a Reuters poll conducted ahead of last week\u2019s gross domestic product data had expected the repo rate to be lowered by a quarter point at the policy meeting, followed by a pause through 2026.
\nHowever, some analysts and market participants had pared rate cut bets after data showed the South Asian economy expanded at a sharper-than-expected clip of 8.2% in the July-September quarter.
\nThe Reserve Bank of India also took steps to boost liquidity in country\u2019s banking sector to support what the central bank chief Sanjay Malhotra defined as a \u201cgoldilocks economy\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
MUMBAI The Indian rupee gave up early gains on Friday after the central bank cut the interest rate by 25 basis points, in line with a consensus view that had albeit softened due to a stronger-than-expected economic growth and the currency\u2019s recent slide. The rupee fell to 89.92 after the policy decision was announced, down […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-518635","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n