5 reasons for RBI to show restraint
Some economists believe headline inflation would move up towards core inflation. So, a 50 bps rate cut would be overkill
If the central bank keeps rates unchanged on Thursday, markets would see this as pulling a fast one on them
MUMBAI : Trading in interest rate swaps suggests expectations are running high from the next monetary policy meet. Some traders are expecting the monetary policy committee (MPC) to go for a deeper 50 basis points (bps) cut in the repo rate, given the concerns over growth and inflation remaining below target.