Mumbai, Nov 19
Leading global financial services firm Morgan Stanley expects the Reserve Bank of India (RBI) to reduce the repo rate by 25 basis points to 5.25 per cent at its monetary policy committee (MPC) meeting, scheduled for the first week of December.
The report said the broader policy stance is likely to stay prudent, with the central bank poised to become data-dependent once this step is taken.
The report states that RBI is expected to adopt a wait-and-watch position as it evaluates its three-pronged easing cycle covering interest rates, liquidity conditions, and regulatory measures. This would give the RBI room to assess how these changes interact with domestic growth patterns and inflation indicators before deciding on any future action.