Reserve Bank of India on track for more cuts: ANZ Bank
NEW DELHI -- Despite cutting its policy repo rate by 25bps for the fifth straight time this year, the Reserve Bank of India's (RBI) move was still less aggressive than had been anticipated, says ANZ bank. Five members voted for a 25bp cut versus one who favoured a 40bp cut.
But all voted to retain an accommodative stance. Growth projections were revised sharply lower, with inflation forecasts for the next one year remaining benign.
ANZ says the policy statement also tilted on the dovish side, indicating it is staying on course for future rate cuts.
"We therefore, retain our expectations for further 50bps of cumulative cuts going forward," ANZ says. www.live.anz.com (ATI).