First Central Bank in the Asia-Pacific region to begin an explicit interest rate easing cycle

First Central Bank in the Asia-Pacific region to begin an explicit interest rate easing cycle
Question: Name the first central bank in the Asia-Pacific (APAC) region to begin an explicit interest rate easing cycle buoyed by benign food inflation and easier global financial condition?
(a) Reserve Bank of India
(b) Bank of Israel
(c) Bank of Japan
(d) Hong Kong Monetary Authority
Answer: (a)
Related facts:
  • According to Fitch ratings released on 24th April, 2019, RBI (Reserve Bank of India) is the first central bank in Asia-Pacific (APAC) region to begin an explicit interest rate easing cycle buoyed by benign food inflation and easier global financial condition.
  • In the four months of 2019, the RBI has cut policy interest rates twice by 0.25 percent each to one-year low of 6 percent.
  • This is the first back-to-back rate cut since the Monetary Policy Committee (MPC) was formed in late 2016.
  • Inflation at 2.9 percent has remained within the RBI’s comfort zone of 4 percent (+/- 2 percent).
  • The Monetary Policy committee (MPC), headed by RBI Governor Shaktikanta Das, cut rates in February and April citing prospects of benign inflation.

Links:

https://www.thehindubusinessline.com/money-and-banking/rbi-first-apac-central-bank-to-begin-interest-rate-easing-cycle-fitch/article26931595.ece

https://economictimes.indiatimes.com/markets/stocks/news/rbi-first-apac-central-bank-to-begin-interest-rate-easing-cycle-fitch/articleshow/69023854.cms?from=mdr