Economics
Another Rate Cut on the Cards for India as Patel Tries to Buoy Growth
- 34 of 39 economists surveyed predict cut; rest see no change
- Omission of "accommodative" policy would be first since 2015
Urjit Patel
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Economists predict Indian central bank Governor Urjit Patel will deliver a final interest-rate cut Wednesday to buoy growth, though the question is whether he will acknowledge it as the last of this cycle.
The Reserve Bank of India will lower the repurchase rate to 6 percent from 6.25 percent, according to 34 of 39 economists in a Bloomberg survey. The rest see no change. The rate will stay there at least until June 2018, a separate survey shows, ending a streak of seven reductions since January 2015. If Patel omits any mention of "accommodative" policy, it would be the RBI’s first change in stance since June 2015.