Rate cut is the only way out of economic slowdown, feel analysts

Bank of America Merill Lynch expects the RBI to slash rates by 25 basis points (bps) in its December monetary policy review and follow it up with another 15 bps cut in February 2020

With the slowdown in economic growth, the clamour for a cut in interest rates has been growing. Though the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) led by Shaktikanta Das has cut rates by over 100 basis points (bps) brining the repo rate to 5.15 per cent – the lowest level since 2010 – analysts expect the central bank to be more aggressive going ahead.

A recent report by Bank of America Merrill Lynch suggests the cut in interest rates is the only way out of the economic slowdown India is facing. They expect the RBI to slash