RBI: One more rate cut in the offering - NAB

Research Team at NAB, notes that the RBI cut the policy rate by 25bp to 6.25% at the October meeting and this decision was chaired by the 6-member Monetary Policy Committee under the newly-appointed Governor, Urjit Patel.

Key Quotes

“While committed to the medium term inflation target of 4%+/-2%, there was a specific mention of supporting growth. NAB Economics is forecasting one more rate cut to 6% by the end of March 2017. The main risk to the forecast stems from higher than expected food price inflation.”