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The RBI is seen reducing its policy rate at this week’s meeting, suggests Economist at UOB Group Lee Sue Ann.

Key Quotes

“Market-watchers will be closely monitoring the upcoming RBI meeting. We think that RBI will likely drop its optimistic rhetoric previously seen in its April meeting.”

“Furthermore, an immediate policy response is crucial at this point, both as signalling endeavour that policy-makers are cognizant of the risks, as well as to shore up growth.”

“As such, we pencil a cut to India’s policy rate by   25bps to 3.75% at this upcoming MPC meeting in June.”