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RBI to slash rates by 0.25%

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The Reserve Bank will opt for another 0.25 per cent decrease in key repo rate in its next monetary policy review on February 6, in what is expected to be the last cut in the current easing cycle, a foreign brokerage said on Tuesday.

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“...we believe that RBI could continue to ease interest rates based on forward inflation rates staying benign,” economists at Bank of America said in a note. There is an “uncertainty” in the growth outlook and the RBI is likely to utilise the policy space to take the repo rate down to 5.25 per cent.

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