RBI To Cut Rates By 0.25% On April 5, 0.50% In FY17: Report
March 23, 2016: According to a report, RBI is expected to cut rates by 50 basis points in the next fiscal year. The economy can expect the first rate cut in the policy review meet next month by 25 basis points.
The government has decided a fiscal deficit target of 3.5 per cent for this year. The ease in inflation and falling food prices are boosting the demand for a rate cut from RBI. The first bi-monthly monetary policy has been scheduled for April 5 this year. RBI may cut interest rates in this summit.
"We have raised our RBI rate cut forecast to 50 bps in FY17 from 25 bps earlier. We see 25 bps cuts on April 5 and in August. After all, the recovery is slackening," Bank of America Merrill Lynch (BofA-ML) said in a research note.