RBI to cut rates in December to 6.25%, say narrow majority of economists: Reuters poll

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Key Points

Inflation is expected to moderate, providing the Reserve Bank of India room for policy easing..

Growth rates are also predicted to slightly decline.ETMarkets.comA slim majority of economists, 30 of 57, in an Oct. 21-29 Reuters poll said the RBI will cut the repo rate by 25 basis points to 6.25% at the conclusion of its Dec. 4-6 meeting..

India's central bank will cut its key policy rate in December by a quarter point to 6.25% to bolster slowing economic growth, according to a slim majority of economists in a Reuters poll who also expect inflation to moderate in the near-term...

Inflation unexpectedly spiked to 5.49% in September, but was forecast to cool to an average 4.9% this quarter and drop to 4.6% in January-March, giving the Reserve Bank of India (RBI) room to ease policy...

"I don't think the fact economic growth in India is faster than most major emerging markets is a barrier to some monetary policy easing...It's one of the least-developed major emerging markets on a per capita basis," Chanco said.. "What matters for policy is the direction of travel and it's clear from most economic indicators activity is losing momentum."..

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