BS Poll: On terminal policy repo rate, Street views are evenly split

The domestic rate setting panel had cut policy repo rate by 50 basis points to5.5 per cent in the June meeting, higher than market expectation of 25 bps

The street is evenly split on the terminal policy repo rate in the current interest rate easing cycle with half of the respondents in a Business Standard poll reckoning it to be 5.25 per cent, while the other half expect it to stay at 5.50 per cent. 

The Reserve Bank of India’s Monetary Policy Committee (MPC) had cut the policy repo rate by 50 basis points (bps) to 5.50 per cent in the June meeting, higher than the market expectation of 25 bps, and changed its stance to ‘neutral’ from ‘accommodative’.  RBI Governor Sanjay Malhotra had said monetary policy is