RBI may cut interest rates for the sixth straight time - watsupptoday.com
RBI may cut interest rates for the sixth straight time
Posted 02 Dec 2019 03:35 PM

Image Source: HINDUSTAN TIMES

Agencies

The central bank is likely to cut interest rates for the sixth straight time on 5 December despite a surprise spike in inflation, as the Reserve Bank of India (RBI) seeks to reverse a protracted growth slowdown in Asia’s third-largest economy.

Eight out of 10 economists and treasury heads surveyed by Mint expect RBI’s monetary policy committee (MPC) to cut the repo rate, at which RBI lends to banks, by 25 basis points (bps) to 4.9%, while maintaining an accommodative stance. Two expect the RBI to cut rates by 15bps.

Economic growth has slowed to 4.5% in the September quarter, its weakest pace since 2013, despite a cumulative 135bps cut in policy rates this year. Indian banks, saddled with record bad loans, have failed to transmit the rate cuts to borrowers.

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