For Quick Alerts
For Daily Alerts

RBI To Likely Cut Interest Rates By 100 Bps In 2019: BofAML Report


After PM Modi's massive mandate in Lok Sabha elections, the apex bank is expected to lower interest rates by as much as 100 basis points in 2019, said a global brokerage concern. 1 basis point is one-hundredth of a percentage point.

RBI To Likely Cut Interest Rates By 100 Bps In 2019: BofAML Report

In its first MPC review meet of FY20, the RBI reduced repo rate by 25 bps to 6% on growth concerns even though inflation was well below the RBI's target.

A report by BofAML said that in order to support various economic parameters such as recovery as well as bring down the yield, in its upcoming June monetary policy review meet the Reserve Bank of India may lower interest rates by 35 bps.

Further, there is expected to be the recapitalization of PSBs with capital money that is kept as surplus as per the Jalan report. Also, there is likely to be a monthly infusion to the tune of $2-3 billion into the money markets to improve liquidity conditions.

Also, for the benchmark indices, the report said, that while the election outcome pushed the index to new highs of 40,000 and 12,000 for the Sensex and Nifty, respectively, hereon focus will be shifted to macro events.

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