In his first monetary policy outing, RBI Governor Urjit Patel cut rates by 25 bps. While global uncertainties and rupee volatility suggest first quarter of 2017 is a better time to ease rates, the Reserve Bank may bring forward the rate cut to December to support growth and tap favourable inflation outlook, says a DBS report. The Monetary Policy Committee headed by RBI Governor Urjit Patel last month cut benchmark interest rates by 0.25% to 6.25%. The next RBI policy review is on December 7. "This assumes that the transition period is complete by the first quarter of 2017," the report added.

Source: dna November 29, 2016 08:06 UTC