RBI is expected to cut rates – BBH

Analysts at BBH see the RBI to loosen further its monetary policy stance at this week’s meeting.

Key Quotes

“Reserve Bank of India meets Wednesday and is expected to cut rates 25 bp”.

“December IP will be reported Friday, which is expected to rise 1.4% y/y vs. 5.7% in November. The economy has softened, due partially to the demonetization seen back in November”.

“CPI rose 3.4% y/y in December, which is in the bottom half of the 2-6% target range. January CPI will be released February 13 and is expected to ease further to 3.2%”.