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Analysts at TD Securities, think that the Reserve Bank of India will cut policy rates by 25bps in the wake of weaker and still below potential growth and well behaved inflation pressures.

Key Quotes

“At the last meeting held during August 5-7 the RBI cut rates by a bigger than expected 35bp to 5.40% while maintaining an accommodative policy stance, leaving the door open to further cuts. Following the government’s recent announcement of corporate tax cuts we expect the RBI to complement this with further, albeit less aggressive easing at this meeting.”