Inflation Seen At 5% In March, RBI To Cut Rates By 0.25%: BofA

March 28, 2015: As per a report of BOFA, the RBI is expected to cut rates by 25 basis points at the policy review meet that is going to be held on April 5. It can happen because of the retail inflation in the country that is at 5 per cent in March.

The Bank of America Merrill Lynch (BofA-ML) is tracking the March Customer price Index (CPI) inflation at 5 per cent. In February, it was 5.2 per cent.

 

RBI rate cut

 

"We continue to expect the RBI to cut rates 25 bps on April 5 and in August," BofA-ML said in a research note.
 
The first bi-monthly policy review meet is going to take place on April 5. The decreasing inflation is boosting the demand for a rate cut. So we can expect a rate cut from RBI next month.