Rate-cutting cycle has a little further to run

Today's decision by the Reserve Bank of India (RBI) to cut the repo rate for the third time this year to 7.25% is unlikely to be the last in the current loosening cycle. But the RBI can't be complacent about meeting its medium-term inflation target. Given this, we are forecasting only one more 25bp cut in this cycle, which would bring the repo rate to 7.00%. 

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