RBI: 25bps cut on cards, supported by better inflation numbers – TDS

FXStreet (Delhi) – Paul Fage, Senior Emerging Markets Strategist at TD Securities, expects that in tomorrow’s monetary policy meet, the Reserve Bank of India (RBI) is likely to cut the policy repo rate by 25bp to 7.0% which is in line with the consensus expectation.

Key Quotes

“The sharp fall in the CPI inflation rate to 3.66% Y/Y in August gives the RBI the room to cut rates further. The 6% target for January 2016 looks like it will be easily achieved.”

“Monsoon rainfall has fallen below average levels for the second year running, but the government has taken a number of measures, including increasing food imports, to lessen the inflationary impact.”

Paul Fage, Senior Emerging Markets Strategist at TD Securities, expects that in tomorrow’s monetary policy meet, the Reserve Bank of India (RBI) is likely to cut the policy repo rate by 25bp to 7.0% which is in line with the consensus expectation.

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