RBI is likely to reduce interest rates by 0.25% in June review: Care Ratings

By Religare
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Care Ratings said that with India's GDP growth slowing down to a decade low, the Reserve Bank of India is likely to cut its key rates by 0.25 per cent at policy review meet on June 17.

    In a note, Care Ratings said, "With WPI (wholesale price index) headline inflation moderating and falling below 5 per cent, the RBI, seeking to balance a growth-inflation trade-off, now appears to be focusing on the former."

     

    "There is a higher likelihood of the RBI reducing interest rates by another 0.25 per cent in the June review," it added.

    The note, written after the release of official data pointing to growth declining to 5 per cent for FY 2013, however, said the central bank would opt for a status quo in case the headline inflation and the current account deficit (CAD) figures go beyond its comfort zone.

    Read more about: rbi care
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    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