Analysts at Morgan Stanley expect the Reserve Bank of India (RBI) to cut interest rates in October, having reduced rates by 35 basis points in August. The central bank has cut rates four times this year, starting from February.
The investment bank believes the RBI may deliver a 35 basis point rate cut next month.
The rate cut odds have strengthened in the recent days, courtesy of rising inflation and slowdown in growth.
Notably, the August retail inflation rate of 3.21% was the highest since October 2018.
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