US Trade Deal Dashes Hope of India Rate Cut

The Reserve Bank of India may keep policy rates unchanged on Friday after a bumper week in which the government boosted spending in its budget and President Donald Trump announced a surprise trade deal, raising the outlook for economic growth.

A majority of the 39 economists surveyed by Bloomberg expect the central bank to keep its benchmark repurchase rate unchanged at 5.25% on Friday. With the economy set to expand at over 7% for a second straight year beginning April and the rupee posting its biggest rally in seven years, some economists, such as Nomura Holdings’ Sonal Varma, expect the rate-cut cycle may even be over. Only five of those polled still expected a cut in this week’s policy meeting.