The Reserve Bank of India (RBI) is expected to cut key policy rates by 25 bps in August, which will lead to lending rate cuts, and in turn support growth, says a report."We continue to expect RBI to cut 25 bps in August, if rains are normal, to cool yields and signal lending rate cuts, BofAML said in a research note.According to global financial services major Bank of America Merrill Lynch (BofAML), risks regarding price rise are overdone and March inflation is likely at 4.2 per cent, well within RBI's 2-6 per cent mandate.As per the global brokerage, fundamentals of the country like growth, money supply and monsoon, point to a benign inflation outlook.

Source - https://www.moneycontrol.com