India’s Contrarian Economist Sees 35 Basis-Point Rate Cut

Bank of America Merrill Lynch economist Indranil Sen Gupta is betting the Reserve Bank of India will lower its benchmark interest rate by an unconventional 35 basis points on Thursday.

Known for his contrarian calls in the past, Gupta is taking guidance from Governor Shaktikanta Das’s comments in Washington in April that central banks could be more flexible in the size of rate adjustments, rather than sticking to the usual moves of 25 basis points at a time.