New Delhi: The Reserve Bank of India may cut key policy rates by 25 bps in the upcoming monetary policy meeting amid subdued domestic industrial activity and slowdown in trade on the global front, says a report.
“While the upside risks to inflation are currently from the monsoon, reversal in food prices and further rise in oil prices warrant a ‘wait and watch’ policy mode, the slowdown in the growth momentum is likely to weigh upon the monetary policy decision,” Dun & Bradstreet India Chief Economist Arun Singh said.
D&B expects a 25-bps rate cut in the Monetary Policy Committee (MPC) meet early next month. The MPC, which decides on key interest rates, will hold a meeting on June 3, 4 and 6.
“Given that the disruptions caused by demonetisation and GST should have waned by now, the slower pick-up across different sectors and investment along with the weakening of demand parameters indicate that the slowdown in economic activity is becoming more apparent,” Singh noted.
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Ms Kalinga