RBI to cut rates, turn 'accommodative' on Thursday – Reuters poll
|According to the latest Reuters poll, the Indian central bank, the Reserve Bank of India (RBI) is expected to the announce a 25bps rate cut at its monetary policy meeting due this Thursday.
The RBI’s six-member monetary policy committee (MPC) will commence its three-day policy review later today.
Key Findings:
“Two-thirds of 66 economists polled by Reuters expect the MPC to wrap up on Thursday by cutting the repo rate by 25 basis points, but that survey was taken even before India released far worse than expected economic growth numbers, so expectations for a cut have probably hardened.
If they are right, and the RBI does lower the repo rate to 5.75% it will be the third meeting in a row since February that India has cut interest rates.
Data out on Friday showed annual economic growth running at 5.8% in the January-March quarter, sharply down from 6.6% in the previous quarter, well below forecasts and the slowest in more than four years.”
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