Next rate cut in October? BofaML says it's possible if RBI waits for below 4% inflation
Updated : December 13, 2019 03:40 PM IST
BofAML expects inflation to peak off at about 6-6.5 percent in December-January.
BofAML continues to expect that the RBI MPC will cut rates by 25 bps on February 6 to support recovery if inflation peaks off in December-January.
If the RBI MPC wants to wait till CPI inflation falls below 4 percent again, the next RBI rate cut may get postponed to October, assuming normal monsoon.
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