The RBI Could Announce One More Rate Cut Next Year: DB

Despite the Reserve Bank of India’s surprise 50bps rate cut unveiled earlier this week, at least another 25bps rate cut can be anticipated next year, believes Deutsche Bank. Taimur Baig and Kaushik Das said in their Oct. 1 research note titled: “RBI’s bold move and fiscal update” that a disinvestment target of INR695bn looks ambitious. The RBI’s recent policy initiatives Baig and Das expressed surprise at the RBI’s 50bps rate cut announcement earlier this week. They point out that the move reflects the central bank’s comfort with the path of inflation in the next 12-15 months. The analysts also highlight the other notable…