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Monetary policy review: RBI may cut rate, but commentary will be cautious

Economic and markets indicators are increasingly signaling a slowing economy, but an even greater worry is a weakness of both consumer and investment sentiment

rbi, reserve bank of india

A synchronised rate cutting cycle by central banks, across geographies in developed and now emerging markets, is the current global theme. Trade related uncertainties, slowing investment and weak sentiment is resulting in a steady growth deceleration, with a progressive weakening of sentiment reinforcing the slowdown. Inflation has remained steady and low, diffusing out from developed economies into the broader global economy.  We expect the MPC to again cut the repo rate, probably unanimously.  Economic and markets indicators are increasingly signaling a slowing economy ...