Brace up for the sixth rate cut in a row

In his toughest policy, Shaktikanta Das, who completes his first year at RBI this month, must reassure the market that the fiscal slippage is priced in

Indian economy growing at 4.5 per cent in the September quarter, falling for the sixth quarter in a row, is no surprise. There will also be no surprise if the monetary policy committee (MPC), the policy making body of the Indian central bank, goes for yet another rate cut next week. 

Will it be a 25 basis points (bps) cut to bring down the policy rate to 4.90 per cent? Or, a 15 bps cut to 5 per cent? One bps is a hundredth of a percentage point. 

The historic low policy rate in Asia’s third largest economy was 4.75 per cent