Lone Analyst Betting on India Rate Cut Sticks to Contrarian Call
- Inflation to ease after July rainfall which is seen normal
- Some RBI policy makers have called for interest rate hikes
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Bank of America Merrill Lynch economist Indranil Sen Gupta is sticking to his contrarian view of a cut in India’s interest rate despite policy makers talking about a possible hike amid stubbornly sticky inflation.
Sen Gupta, co-head of India Research at BAML in Mumbai, stands out in a crowd that’s betting the Reserve Bank of India could raise interest rates this year, with some, like Deutsche Bank AG forecasting a pre-emptive move as early as June. Markets are pricing in at least 50 basis points of rate increases in the coming 12 months.