India: RBI delivers – ANZ

Analysts at ANZ note that the Reserve Bank of India (RBI) delivered on the widely anticipated 25bps.

Key Quotes

“A key surprise was to maintain a ‘neutral’ policy stance in a 5-1 vote. That said, the RBI also reiterated that the output gap remains negative and also trimmed its GDP growth and inflation forecasts for FY20 (fiscal year ending March 2020). Therefore, assuming that the monsoons are normal, the door for a further cut of 25bps remains open. Market pricing is also signalling rate cuts of a similar magnitude.”