The weakness of inflation over recent months continues to outweigh concerns about currency depreciation and leaves the door open for the RBI to deliver one final rate cut at the conclusion of the MPC meeting on Friday 6th February. We are forecasting a 25bp cut to the repo rate, taking it to 5.00%, while the consensus expects no change. However, with the economy holding up and inflation set to rise back towards the 4% target, we think this will mark the end of the easing cycle.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services