RBI has delivered 135 basis points of interest-rate easing this year, but lenders have only transmitted a fraction of that to borrowers.
A rate cut on expected lines would boost the equity indices
R Sivakumar says the RBI is promising an 'accommodative' stance
MPC has room to pause, alongside other central banks, to consider future plans
Although business conditions in the Indian manufacturing sector improved in November, the rise, however, remained subdued compared to earlier this year and the survey history, the study said.
The Reserve Bank of India will meet days after a report showed growth collapsed to 4.5 per cent in the July-September quarter, the first time it's been below 5 per cent since 2013
The recent inflation data is not a serious problem for the Monetary Policy Committee
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
At the global level, trade war tussle, monetary policy of major central banks and oil prices, analysts feel, are the factors that will dictate market direction
MPC concern explains Governor Shaktikanta Das's statement that the Reserve Bank of India would keep its policy stance accommodative.
At 4.75%, India will still offer positive rates of return to investors seeking high yields
The latest trouble in the banking system may further hurt lending in an industry still grappling with the fallout from the collapse of a major shadow lender last year
The direction is clear -- there will be more rate cuts but the pace will depend on the incoming data
The Reserve Bank of India lowered its benchmark repurchase rate by 25 basis points to 5.15 per cent on Friday, in line with the forecasts of a majority of economists
Although the transmission of monetary easing undertaken so far has been staggered and incomplete, it is expected to improve going forward.
The RBI clearly signalled its continued focus to revive growth, implying that more rate cuts are in the offing.
According to BIS, NDFs in six currencies account for two-thirds of the trade in the NDF globally
The RBI's action was also influenced by central banks globally, especially those of the emerging markets
The move would go some way in improving consumer sentiment in the festive season, which is a crucial period for real estate sales, Puri added.
Industry's reaction came as the central bank slashed its benchmark lending rate by 0.25 percentage points to 5.15 per cent.