RBI expected to cut interest rates not before February 2021 – Barclays

The Barclays economists believe that the Reserve Bank of India (RBI) will refrain from rate cuts until early next year but it will continue to provide ample liquidity to ease the funding pressure.

Key quotes

“India (RBI) may continue to ease financial conditions through liquidity, regulatory steps.

“Expect one-off India rate cut of 25bps in February Monetary Policy Committee (MPC) meeting.”

“Room to cut India policy rates further will likely open up only in January-March.”