The Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) may cut interest rates by 25 basis points on Wednesday after retail inflation hit a record low in June, economists say.
At the August 2 meeting, we expect the RBI to cut rates by 25 bps but maintain its neutral policy stance, said a Morgan Stanley report dated 26 July.
The Indian economy has been struggling. India GDP growth rate slowed to 6.1% in the March quarter because of demonetisation and credit growth to companies has slowed to a trickle as banks are weighed down by a pile of bad loans. The June quarter earnings data now also points to a slowdown in some sectors ahead of the introduction of the goods and services tax (GST) on 1 July.
At the previous bimonthly monetary policy review, the MPC had kept the repo rate unchanged at 6.25% but lowered its inflation forecast to 2-3.5% for the first half of 2017-18. However, since then, inflation has continued to cool. For More Information Please Visit : www.paceresearchindia.com and Call : 8817774774
At the August 2 meeting, we expect the RBI to cut rates by 25 bps but maintain its neutral policy stance, said a Morgan Stanley report dated 26 July.The Indian economy has been struggling. India GDP growth rate slowed to 6.1% in the March quarter because of demonetisation and credit growth to companies has slowed to a trickle as banks are weighed down by a pile of bad loans. The June quarter earnings data now also points to a slowdown in some sectors ahead of the introduction of the goods and services tax (GST) on 1 July.
At the previous bimonthly monetary policy review, the MPC had kept the repo rate unchanged at 6.25% but lowered its inflation forecast to 2-3.5% for the first half of 2017-18. However, since then, inflation has continued to cool. For More Information Please Visit : www.paceresearchindia.com and Call : 8817774774
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