RBI Watch: Falling inflation gives RBI scope to keep cutting

With headline inflation now at a multi-year low, the Reserve Bank of India (RBI) is poised to cut the repo rate by another 25bps (to 5.75%) at the conclusion of the MPC meeting on Friday 6th June. In all, we maintain our long-held forecast that the repo rate will fall to 5.50% in this cycle, a formerly dovish view that the consensus has now caught up with.  

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