RBI likely to reduce repo rates and expected to go for a further rate cut
On Monday according to the information said by a source, the RBI is expected to go for a further rate cut in the ensuing monetary policy review meet amid weak economic activity and being inflation.
In October the RBI is likely to cut the policy rate by 25 bps and another 25 bps in December according to the information said by a source.
The Source said that there is a belief that the RBI Monetary Policy Committee(MPC) will almost certainly cut the policy repo rate on October 4 th.
On October 4 th the central bank which has already reduced the key policy rate four times in the current calendar year is scheduled to announce its next bi-monthly monetary policy.
According to the report, the facilitating cycle is relied upon to stop after an additional 50 bps as by December feature CPI expansion is required to remain at near 4 percent, decreasing a case for further facilitating to proceed.