Nearly half of respondents expected a 25 basis point rate cut by mid-2019. "The actual cost of borrowing is very high for the productive sector and there is heightened uncertainty about the health of the financial sector. The RBI needs to ensure the stability of the financial sector." However, for the central bank, cutting rates to support the financial sector by taking comfort from the sharply lower inflation rate might not be as simple as it sounds. "Notwithstanding the pressures, I don't think RBI will rush through to ease rates," she said.

Source: Mint February 05, 2019 05:15 UTC