RBI: 25bp rate cut in the repo rate is broadly expected - Rabobank

Michael Every, Senior Asia-Pacific Strategist at Rabobank points out that in India today will see the RBI rate decision, where a 25bp rate cut in the repo rate is broadly expected by the market.

Key Quotes

“On the back of both an OECD-like (i.e., not very Indian) headline CPI inflation level of 1.5% y-o-y and a slump in the manufacturing PMI to an 8-year low of 47.9 on the back of demonetization. Let’s watch the latter closely and see if it bounces back soon. Again, not to mind regardless as the Bombay Sensex index is proudly wearing “SENSEX 32,000!” baseball caps, having changed headgear seven times since last December.”