'Expect rate cut in Oct-Dec; RBI to stick to neutral liquidity'

In his last policy review scheduled for today, Reserve Bank Governor Raghuram Rajan will keep the benchmark rates unchanged and will uphold RBI's neutral liquidity stance, said Anshula Kant, CFO of SBI. Speaking to CNBC-TV18, Kant said the market has already priced in a 25 basis points rate cut, only that the timeline is not clear. Meanwhile, A Prasanna, Chief Economist at ICICI Securities PD, believes inflation trajectory still stands high as of now and expects rate cut around in October- December. He is of the opinion that inflation target of 5 percent may not be met owing to the growing the closure of FCNR(B) accounts, which may put pressure on liquidity.Also, sub-7 percent flow for the ten year bond yield is not sustainable unless structural changes and inflation come down, Prasanna added.For entire discussion, watch accompanying video.