RBI: Another rate cut is expected later on Thursday – UOB

The Reserve Bank of India (RBI) is seen reducing its key rates at its meeting today, suggested Lee Sue Ann, Economist at UOB Group.

Key Quotes

“The RBI reduced its policy repo rate by 40 bps to 4.0% in an unscheduled monetary policy meeting on 22 May. RBI had explicitly stated that ‘more (policy) space will open up to address the risks to growth’, even after the surprise 40 bps cut to its repo rate.”

“As such, we pencil in another 25 bps cut in its upcoming meeting, and another 25 bps in 4Q20 to bring the benchmark rate to 3,5% then”.