Credit Suisse sees 50 bps rate cut in RBI policy review

The Reserve Bank of India is likely to cut key interest rates by 0.50 per cent, to 7.5 per cent, in the forthcoming monetary policy review on easing inflationary pressures, says a Credit Suisse research report.

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Positive surprises in the recent WPI inflation data — both headline and core — and likely ebbing of inflationary pressures may prompt the central bank to cut key interest rate in its next policy meet, it said.
"Following a break of nine months, we expect the Reserve Bank of India to cut the repo rate at its January 29 meeting, probably by 50 basis (0.5 per cent) points to 7.5 per cent," it said.