RBI policy review: Rate cut a certainty after weak GDP data, say Experts

The policy repo rate is at 6%. Retail inflation was at 2.92% in April

The fourth-quarter growth numbers have forced many analysts to weigh in on a definite rate cut at Thursday’s monetary policy review.

Although an overwhelming majority of Reserve Bank of India (RBI) watchers were pencilling in a rate cut on June 6, it seems the 5.8 per cent growth in gross domestic product (GDP) for the fourth quarter has now solidified that view even among those who advised caution. Now there is a near consensus that at least a 25 basis points cut, if not 50, can be expected in the June policy. One basis point is a hundredth of a