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RBI may cut 35 bps next month, 15 bps by December


Our base has the RBI MPC following Governor Das into another ‘out-of-box’ 35bps cut (followed by 15bps in December, and if global growth weakens, 40bps by September.) Why 50bps now?

It remains to be seen how banks re-price their lending rate on SME and retail loans on October 1. (Reuters)

By Indranil Sen Gupta & Aastha Gudwani

We believe there is a rising case for a 50bps RBI rate cut on October 4, with August inflation coming in at a lower-than-expected 3.2% on September 13. Core inflation (except gold) is a reasonable 4%. We track September inflation at 3 ...


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