RBI likely to cut policy rate on Aug 9: BofA-ML

NEW DELHI: The Reserve Bank of India is expected to cut policy rate by 25 basis points during its monetary policy review on August 9 as inflation at 6% remains in

NEW DELHI: The Reserve Bank of India is expected to cut policy rate by 25 basis points during its monetary policy review on August 9 as inflation at 6% remains in the “benign” zone and forecast of good monsoon is also expected to help, according to a Bank of America Merrill Lynch (BofA-ML) report. According to the global financial services major, investors should not read much into the higher May consumer prince index-based inflation print at 5.76%, since it was entirely drive by higher agflation (agricultural inflation).

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