The Reserve Bank of India is unlikely to cut either the benchmark repo rate or cut banks' reserve requirements, Union Bank of India CMD Arun Tiwari told CNBC-TV18 in an interview.
"I don't think there is a case for a repo rate cut. The central bank is very data-driven and nothing has changed [in the data] since March when it cut rates," he said.
As for the cash reserve ratio and statutory liquidity ratio, Tiwari said there was surplus liquidity in the system and so there was no rationale for cutting the requirements. "On the contrary, it may be conter-productive [and result in spiking inflation]."
ICICI Securities Primary Dealership chief economist A Prasanna, too, added that he does not see a repo rate or CRR cut by the RBI today.
After two rate cuts already having taken place in the year, Prasanna said he expected the central bank to next cut rates by 25 basis points in June.
"The RBI will sound more dovish though," he said, adding that given the weak recent US jobs report, the Federal Reserve would likely push its own rate hike to September, something that should help the RBI. (An early Fed rate hike would have put upward pressure on the dollar, while an RBI rate cut may further depreciate the rupee).
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