RBI to cut rates by mid-year - Reuters poll


The Reserve Bank of India (RBI) will change its stance to "neutral" and could cut interest rates in June at the latest, according to a Reuters poll of economists. 

A month ago, economists predicted rate hike cycle would begin next quarter. The outlook, however, has flipped following RBI Governor Urjit Patel's sudden resignation on Dec. 10. 

Key points (Source: Reuters)

  • RBI to keep repo rate on hold at 6.5 percent in Feb, change policy stance to 'neutral'. 
  • RB to cut repo rate by 25 basis points (bps) by mid-year to 6.25 percent vs the previous forecast of a 25 bps rate hike. 
  • India government 2018/19 fiscal deficit to be 3.5 percent of GDP; slightly higher than the government's target of 3.3 percent. 
  • Indian economy to grow 7.3 percent in FY 2019/20 vs the previous forecast of 7.6 percent. 
  • Uncertainty around the national election outcome is the biggest risk to the Indian economy. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling to hold onto 1.10 as USD gains ground

EUR/USD is trading close to 1.10, as the US dollar gradually advances. Two White House advisers expressed contradicting accounts of US-Sino trade talks, causing confusion. Germany refrained from adding fiscal stimulus.

EUR/USD News

GBP/USD trades around 1.25 as EU pours cold water on Brexit hopes

GBP/USD is trading around 1.25, off the two-month highs of 1.2582 as EU officials cast doubts about the seriousness of the new UK proposals on Brexit. 

GBP/USD News

USD/JPY drops to one-week lows on trade war headlines

The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture.

USD/JPY News

Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more

Forex MAJORS

Cryptocurrencies

Signatures