TD Securities analysts are expecting the Reserve Bank of India to add to the 50bps of easing already implemented this year by cutting its repo rate by 25bp to 5.75%.
Key Quotes
“The RBI revised lower its path of inflation at its April policy meeting while expressing concerns about exports growth as global growth slows. Upside risks from the Monsoon, food and oil prices have yet to be manifest themselves.”
“The output gap remains negative giving the RBI room to ease to boost private investment in particular. High frequency indicators have softened and we expect policy easing to be accompanied by further durable liquidity injections over coming weeks.”
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