Our base case expectation is of a 25 bps Repo Rate cut along with a ‘Dovish’ commentary to suggest more room to cut in the coming months . But we won’t be surprised to see a 50 bps cut on Thursday itself. There is scope to cut by 50 bps given the current inflationary trajectory and on the continued slide in GDP growth and economic activity.
The RBI sounded growth focused in the February policy and intermittent data points received since then have pointed to lower growth and softer infla ..
