Economy Six reasons for RBI to cut interest rate in August by BofA Securities Updated : August 05, 2020 10:59 AM IST BofA Securities, in a recent report, mentioned that it continues to expect a 25 bps rate cut in August and another 75 bps in FY21. The RBI, in its previous policy meet held in May, had cut 40 basis point reduction in repo rate to 4 percent. In bear case, BofA Securities sees GDP contraction at 7.5 percent and a 200 bps rate but in FY21. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.