RBI may reduce rates by 25 basis points, say economists and fund managers

September 09, 2015: The market is giving signs again of a rate cut. RBI may cut interest rates by the end of this month. The finance ministry and Government of India are keeping the track of inflation and food prices. This may lead to a rate cut by RBI.


RBI cut Repo Rate


A poll was conducted by Economic Times of 20 top economists and fund managers. This ET Poll is demanding a rate cut. The market is expecting a rate cut of 25 basis points.

"On balance we expect inflationary risks from monsoon to be transitory amid low commodity prices and subdued demand," says Anurag Jha, an economist at Citigroup, who expects a reduction. The Government is still trying to maintain the inflation and food prices so that the common man should not face any pinch or problem.

Policy rates are reduced by 75 basis points since January 2015 as per the guidelines of The Reserve Bank of India (RBI). RBI has cut the repo rate thrice in this year, but the commercial banks didn’t cut the rates as per the expectations of RBI.