RBI to hold rates: Edelweiss

The Reserve Bank is expected to keep interest rate constant in its upcoming policy decision scheduled on October 4, 2017, according to investment research firm, Edelweiss.

“We have been arguing, against consensus, that the rate cut cycle is already behind us. If RBI choose to loosen monetary policy it could opt for another 25bps rate cut sometime in the next 3 months. However we believe that would most likely be the last of the cycle for now,” research note by the company said.

The company also added, “We believe that the central bank may not cut rates in reaction to lower GDP numbers as they have reiterated that lower growth is more transient. Also, RBI may want to look at more data to cut rates.”