According to a Reuters poll of economists, the Reserve Bank of India is seen cutting its benchmark interest rates in August for the fourth straight meeting amid dwindling economic growth.
Key Findings:
“Almost 80% of 66 economists in the July 17-24 poll expected the RBI to cut its benchmark repo rate by 25 basis points to 5.50% at the Aug. 7 meeting.
Three respondents predicted a 50 basis points cut and the remaining 10 forecast policy on hold.
The poll’s findings support RBI Governor Shaktikanta Das’ recent comments about the central bank’s accommodative stance and suggests further easing.
Indeed, following next month’s expected move, the next rate cut is seen in early 2020, after which the RBI is forecast to keep rates on hold at 5.25% through to end-2020.”
Extra Reading:
USD/INR remains below 50-DMA, foreign fund outflow/Fed rate concerns offer key directives
RBI Gov. Das: Change in policy stance as good as additional 25-bps rate cut
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