The Reserve Bank of India (RBI) is expected to leave the policy rate unchanged at 7.5% at its meeting on 7 April, based on the policy statement after its inter-meeting rate cut in March. It may consider measures to improve monetary policy transmission. “Given our expectation that CPI inflation will average around 5.4% in FY16 (year ending March 2016), and assuming the RBI is comfortable with the real policy rate at 150-200bps, we see scope for another 25-50bps of rate cuts”, says Standard Chartered Research.Consecutive inter-meeting rate cuts in January and March have made it difficult to forecast the exact timing of the next rate decision, however.

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