35 bps rate cut likely by RBI, says report

Mumbai, June 4 

The RBI will go for an unconventional 0.35% cut in its key lending rate at the forthcoming review on Thursday as inflation is within its comfort range.

It can be noted that since Governor Shaktikanta Das has assumed office, the central bank has cut its key rates by a cumulative 0.50% as inflation ebbed.

A wide set of analysts expect the RBI to cut rates by 0.25% at Thursday review, primarily to address worries on growth, which has dipped to a 5-year-low of 5.8% for the March quarter. 

While expecting the 0.35% cut, analysts at the Bank of America Merrill Lynch said they expect the headline inflation to rise to 3.3% in May, but added it is within the 2-6% range which the government has set for the RBI. — PTI

from The Tribune http://bit.ly/2Wmq3r6
via Today’s News Headlines