Debt mutual fund managers are hopeful of a rate cut by Reserve Bank of India (RBI) in the next few months. They believe that a significant fall in inflation rate makes a strong case for a rate cut in 2017.
"The recent data sure makes a room for a rate cut. The Consumer inflation fell to 1.54 per cent in June, which is a good sign, provided these numbers remain consistent," says Lakshmi Iyer, CIO (Debt), Kotak Mutual Fund. Iyer believes that demonetisation, GST, monsoon and a host other macro and micro factors might influence RBI's decision to cut rates.