In­fla­tion seen at 5% in March; RBI may cut rates by 25 bps

The Financial Express - - ECONOMY -

In­dia’s re­tail in­fla­tion for March is ex­pected to be around 5% and the Re­serve Bank is likely to cut its key rate by 25 ba­sis points each at its pol­icy re­views on April 5 as well as in Au­gust, says a re­port. Ac­cord­ing to Bank of Amer­ica Mer­rill Lynch (BofA-ML), its in­fla­tion in­di­ca­tor is track­ing March CPI in­fla­tion at 5%, slightly lower than Fe­bru­ary’s 5.2% . “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 de­clin­ing in­fla­tion and neg­a­tive in­dus­trial outlook have strength­ened the case for RBI cutting in­ter­est rate in its first bi-monthly mone­tary pol­icy for 2016-17 on April 5.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.