The slower pace of consumer price rises has triggered expectations of a rate cut, with market participants shortening the odds on the central bank changing its stance to neutral early next year before resuming the cycle of reduction in financing costs.
“A cut in funding costs will help New Delhi to retain growth, fuelling investments. The policy stance may be changed first to neutral soon,” said Soumya Kanti Ghosh, chief economist at SBI. “Crude oil prices are unlikely to shoot up next ..