Abhishek Upadhyay, senior economist at ICICI Securities Primary Dealership (I-Sec PD), says the minutes of the monetary policy committee (MPC) confirmed that there would be another rate cut of 25 basis points in Reserve Bank of India’s (RBI) April policy.
One basis point is a hundredth of a percentage point.
The minutes of MPC's latest meeting where the repo rate was cut by 25 basis points paint a dovish picture. The MPC minutes show that the panel's focus is on "spurring growth" as the inflation outlook remains benign.According to Upadhyay, there are no signs of
a deep rate cut from the minutes. "
We estimate October-December inflation at 3.9-4 percent," said Upadhyay.