Reserve Bank Of India Likely To Trim Rates In September: DB

Thanks to domestic economic conditions remaining supportive, Reserve Bank of India could announce a cut in the policy repo rate by 25bps on September 29^th, notes Deutsche Bank.

Kaushik Das of Deutsche Bank in his “India Economics Weekly” research report dated September 4, 2015 argues the disinvestment target of INR695 billion is highly ambitious.

India’s sluggish economic recovery

Das notes spillover risks from continued volatility in global financial markets or potential disorderly exchanger rate movement in other EM currencies could delay RBI’s decision to trim rates. However, at this juncture the analyst believes domestic economic conditions will likely push the central bank to trim the policy repo rate by 25 bps on September 29, 2015.

Das points out that the April-June GDP...