India: RBI expected to cut rates this week – UOB

The RBI is seen reducing its policy rate at this week’s meeting, suggests Economist at UOB Group Lee Sue Ann.

Key Quotes

“Market-watchers will be closely monitoring the upcoming RBI meeting. We think that RBI will likely drop its optimistic rhetoric previously seen in its April meeting.”

“Furthermore, an immediate policy response is crucial at this point, both as signalling endeavour that policy-makers are cognizant of the risks, as well as to shore up growth.”

“As such, we pencil a cut to India’s policy rate by  25bps to 3.75% at this upcoming MPC meeting in June.”