See 25 bps repo rate cut by RBI; no change in CRR, SLR:Poll

According to CNBC-TV18 an overwhelming 85 percent of economists and treasury heads polled say a 25 basis point cut in repo rate is imminent in the upcoming policy. Respondents say it is not just the low consumer inflation, but the fact that the Fed hike fear is away for now and global commodities remain subdued.None of the respondents expect any change in the CRR or cash reserve ratio. 70 percent respondents say SLR or statutory liquidity ratio will be left unchanged, while 20 percent believe there may be a 50 basis point reduction and the remaining expect a 25 basis point cut.A good 55 percent of the respondents see this September cut as the last cut for this year, but 40 percent believe there will be another 25 basis point rate cut after a clearer picture emerges on monsoons. And 5 percent were more optimistic than the others, expecting a 75 basis point cut, including the one on Tuesday.The expectation of the rate cut also hinges on the fact that most respondents actually expect RBI to lower its January, 2016 inflation forecast from the current 6 percent.  45 percent of respondents expect it to be lowered to around 5.5 to 5.7 percent, while 10 percent expect an even lower forecast of fewer than 5.4 percent and 35 percent expect the forecast to remain unchanged.On gross domestic product (GDP), 80 percent expect the forecast to be kept unchanged at 7.6 percent and the remainder expects it to be marked down to 7-7.5 percent.The tone of the governor's statement will be as keenly watched by the markets along with the rate cut action itself. A majority of the respondents are expecting the governor to sound neutral and not signal further cuts. 30 percent expect a somewhat dovish stance and a signal for more rate cuts.