(LiveMint)
The Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) will cut the key policy rate by 25 basis points (bps) as inflation cooled and economic growth slowed to a five-year low, according to economists and bankers surveyed. Seven of the 10 economists and bankers polled expect the RBI to cut the repo rate by 25bps, one expects a rate cut of more than 25bps and the rest say RBI will pause this time.
Half of the participants surveyed said that the central bank will stick to its neutral stance in the upcoming policy. One of them said he expects RBI to either change it to accommodative or do away with the practice of declaring a stance. If there is a rate cut this time, the stance should move to accommodative since a neutral stance is not in line with three consecutive rate cuts, said Soumya Kanti Ghosh, chief economic adviser at State Bank of India (SBI).
