RBI will cut repo rate by 25 bps at Jul meet: Credit Suisse

We still maintain our forecast of a 25 basis points repo rate cut by RBI in July, said Credit Suisse. Good monsoon will help in decline in food inflation, which is a more important driver than currency.

June 17, 2013 / 14:09 IST

Moneycontrol Bureau

Brokerage house Credit Suisse is confident that the Reserve bank of India will cut repo rate by 25 basis at its next policy review meet on July 30. Responding to RBI’s decision to keep rates unchanged at today’s meet, Credit Suisse said it was on expected lines.

Also read: Global factors will determine rate cut in July: Rangarajan

"We still maintain our forecast of a 25 basis points repo rate cut by RBI on Jul 30. There will be a surprise in the form of a fall in CPI next month along with decline in WPI inflation," said the Credit Suisse note accessed by CNBC-TV18..

"We hope monsoon remains good. Good monsoon will help in decline in food inflation, which is a more important driver than currency. Also, trade deficit numbers have started showing improvement," the note said.

first published: Jun 17, 2013 02:09 pm

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