Reserve Bank of India trims repo rate in policy change

NEW DELHI - The Reserve Bank of India (RBI) cut its policy repo rate by 25 basis points to 6.25% today, and simultaneously changed its stance to neutral from 'calibrated tightening'. Both decisions were in line with ANZ Bank forecastsour forecasts. 

The RBI maintained that risks to growth were evenly balanced, at the same time revising lower its projections for CPI inflation for the next 9-12 months.

While the change in stance was unanimous, the decision to cut the repo rate was divided with a 4-2 vote.

ANZ says it continues to expect RBI's future policy action to remain data-dependent, and does not think this is the beginning of an easing cycle -- unless inflation materially underperforms the central bank's forecasts.  www.live.anz.com (ATI).