RBI might cut rates further by 75 bps – BTMU

FXStreet (Barcelona) - The Research Team at BTMU expects the Reserve Bank of India to cut rates further by 75bps this year and bring the benchmark down to 7%.

Key Quotes

“We see at least 75 bps cuts in the benchmark rate this year (bringing benchmark to 7%). While another cut may well come on the scheduled 3 February, we think that RBI may wait till after the late February budget.”

“RBI raised three factors in the sustenance of the easing bandwagon – (1) the continuation of the disinflationary momentum, (2) “sustained high quality fiscal consolidation” and (3) reforms to deal with supply-side constraints.”