India Rate Cut Now a Question of When, Not If, For Rajan
- Most economists surveyed now predict a 25bps cut by Sept. 30
- Swaps are pricing in a 25bps reduction by the end of the year
Vehicles sit in traffic at the Begum Bazaar in Hyderabad, India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Both economists and traders are now expecting another India rate cut this year: The debate is centering on whether it will come this month or in December.
Eleven of 21 analysts in a Bloomberg survey published Aug. 25 see the repurchase rate lowered to 7 percent from 7.25 percent by the end of this month, while the rest see no change. In July, only five of 25 had predicted a cut this quarter.