Central bank of India to impose rate cut anew
India’s reserve bank will be cutting rates again for the fifth time in 2019 as part of its effort to beef up economic growth amid unceasing inflation.
The central bank is expected to lower its key lending rate by 25 basis points to 5.15%. When summed, RBI will have cut a total of 135 basis points in 2019.
Analysts say that the central bank will implement one more rate cut up to 15 basis points in December.
Some even expect a bigger cut this week, following a 35-basis-point cut in August.
“With current inflation remaining benign, we expect RBI to opt for a 40 basis points rate cut at its policy review later this week in a bid to continue its support toward growth revival,” Yuvika Oberoi, an economist at Yes Bank in Mumbai, said.
India’s economic growth only moved up 5% in June, marking its lowest growth rate since 2013.