Nagpur: Reserve Bank Governor Raghuram Rajan on Tuesday cut the benchmark repo rate by 50 basis points to a four-year low of 6.75 per cent. Most analysts polled by Reuters expected the central bank to slash rates by 25 basis points.

Here are the highlights from Dr Rajan’s speech:

The RBI will be accommodative to the extent possible
January 2016 CPI target of 6% looks achievable
Expect some rate transmission soon
RBI has front-loaded policy action
To start cutting SLR from January
The global economic situation not looking good
The economy reeling with legacy issues
There are no silver bullets
India can still be a country with strong growth
Hike in foreign investment limit in bonds to be announced every March, September
RBI pays attention to Fed stance. But it is not the central thing we look at
Risks to inflation include weak monsoon
The RBI and the government working hard to turn around the economy
Transmission of rates is one of the factors we are looking at
We need to have greater comfort on the inflation front
Government bonds FII cap relaxation in phases
Pay commission report to act as stimulus
See consumer inflation moderating from here
Inflation to stay below January 2016 target of 6% in FY16; will average 5.5% for FY17
Capacity utilisation still very tepid. Corporate investment still weak
Since our last policy, the conditions we had laid out were broadly met
Reduction in banks’ deposit rates has been substantial
50-basis-point cut not a Diwali present
My name is Raghuram Rajan and I do what I do
Used maximum room given by inflation