InvestorQ : Is the RBI likely to cut rates again on October 04 and how much can we expect?
Katherine Gonsalves made post

Is the RBI likely to cut rates again on October 04 and how much can we expect?

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Rutuja Nigam answered.
2 years ago
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That is hard to say but based on the market expectations, it could be in the range of 20 to 25%. The RBI cut the rates by 35 bps in the August policy and that was the fourth consecutive cut in rate. Hence the RBI may go a little conservative this time around. Also the government has just given a boost by cutting the rates of tax from 30% to 22% and hence the RBI will be in a position to go a little slow on rate cuts.

However, it does look like there will be a rate cut. In the last policy also the RBI had underlined that it would cut rates to give a boost to growth. With the core sector growth for August coming at (-0.5%), there is an urgent need for a rate cut. Hence the RBI is most likely to cut rates although the quantum of cut will be lower than the August cut.

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