RBI cuts rates again amid growth and non-bank concerns
Fresh trouble in the non-bank sector raises concerns over broader financial system
The Reserve Bank of India has cut its policy rate for the third time this year against a backdrop of slowing growth and potential spillovers from the non-bank sector.
The RBI’s press conference today (June 6) was dominated by concerns over Dewan Housing Finance, a major non-bank firm that saw its credit rating downgraded to “default” this week. The firm’s share price was down around 16% today, and broader bank stocks also fell sharply amid fears of contagion.
Governor Shaktikanta Das said the
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