For Quick Alerts
For Daily Alerts

Bankers see 25 bps rate cut in May policy review

By Religare
Bankers see 25 bps rate cut in May policy review
With an unexpected and steep fall in Wholesale Price Index (WPI) during the month of March, bankers are expecting a 25 basis point rate cut next month at RBI's monetary policy review on May 3, 2013.

WPI inflation fell to 40-month low at 5.96 per cent during March as compared to 6.84 per cent in the previous month.

A leading media report suggested quoting Deutsche Bank's official that "We think RBI will support an easing monetary policy bias in the next few months. Consequently, we expect the central bank to cut the repo rate by clips of 25 basis points in the next two policy meetings (May and June)."

While some economists said that a repo rate cut alone would not solve the purpose till CRR remains unchanged, some other economists said that RBI may refrain from rate cut in May as Current Account Deficit (CAD) and retail inflation remain high.

CAD came in at 6.7 per cent of GDP during December quarter while retail inflation has remained above the double-digit mark in March.

Read more about: repo rate
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more