RBI could cut rates further in February – UOB

The RBI is seen reducing further its benchmark rates at the next month’s meeting, likely by 25 bps, suggested the Global Economics & Markets Research team at UOB Group.

Key Quotes

“RBI kept its benchmark rate unchanged at its 5 Dec meeting, leaving both repurchase rate and reverse repurchase rate at 5.15% and 4.90%, respectively. The central bank cited that there is still “monetary policy space for future action”, and kept its accommodative stance “as long as it is necessary to revive growth”. We opine that growth headwinds could still persist, and we expect the central bank to cut its benchmark rate by 25bps at its 6 Feb 2020 meeting”.