The Reserve Bank of India (RBI) is expected to go for a rate cut in the first half of this year, largely owing to 'below estimate' inflation, says a DBS report.
Rising prices of petrol and diesel fuelled Wholesale Price Index (WPI) inflation to 3.39% in December 2016.According to the global financial services major, the WPI readings are likely to head towards 4% in the first quarter (Q1) of this year from 3.4% in October-December quarter of 2016.These readings are far from "threatening" levels and still hovering below the 5.4% averaged in the past decade.

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