RBI Seen Cutting Rate Again To Arrest Falling Growth

With GDP growth sinking to a six-and-a-half-year low of 4.5 per cent in the second quarter of FY2020, the Reserve Bank of India is expected to cut the repo rate by 25 basis points to revive the moribund economy.

Economy watchers, however, say the RBI has already done its part, cutting the policy repo rate cumulatively by 135 basis points in the last nine months, and now it is for the government to do some heavy lifting to spur economic growth.

Though the retail inflation breached the RBI’s comfort zone of 4 per cent in October, touching a 16 month high of 4.62 per cent against 3.99 per cent in the preceding month and 3.38 per cent in October 2018, experts believe the central bank will cut-rate, again, to address growth concerns.