Wednesday, June 07, 2017

Will the RBI lower rates in the year? 
The answer is definitely yes, though the timing may be uncertain. While inflation is low and trending downwards, the outlook on possible negatives that may be driving inflation forward will be critical in this context. Presently, if inflation remains benign – and there is no reason to think otherwise, a cut of 25 bps may be expected in the next half though it is more likely to be invoked in October when the busy season starts.

---- Madan Sabnavis, chief economist at CARE Ratings, The Business Standard, 7 June, 2017.
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