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Jan 19, 2017
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RBI may effect 25 bps rate cut on Feb 8, in April: BofA-ML
The Reserve Bank of India is expected to go in for a 25 bps rate cut at its next monetary policy meet on February 8 — as also in April — says a Bank of America Merrill Lynch (BofA-ML) report.According to the global financial services major, further easing is likely as demonetisation is hurting growth while inflationary pressure is benign and the government is expected to target a conservative fiscal deficit of 3.5 per cent of GDP.“We grow more confident of our call of a 25 bps RBI rate cut on February 8 (and April) after release of latest CPI/WPI/ IIP data,” BofA-ML said in a research note.Incoming data shows that demonetisation is impeding growth, BofA-ML said, adding that the “old series GDP growth is already languishing at 4-4.5 per cent”.
Source -
http://www.thehindubusinessline.com
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