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RBI to cut more rates next year, says CLSA's Wood

ANI  |  New Delhi [India] 

The Reserve Bank of India's decision in the credit policy to cut the repo rate by 25 basis points and lower the target for real suggests that significantly easier monetary policy is coming, says Chris Wood, the author of CLSA's newsletter GREED and fear.

"This is not irresponsible since credit growth has been running almost in line with nominal growth for five years," says Wood as he expects to see more rate cuts next year.

India's retail in September fell to a 13-month low of 4.31 percent mainly on the back of a sharp fall in food prices.

"From an Indian equity standpoint, monetary easing in the context of a stable currency is an obvious positive," said Wood in a newsletter.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 14 2016. 12:07 IST
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