RBI MPC meeting preview – Committee likely to cut repo rate by 25 bps The Reserve Bank of India’s monetary policy committee shall announce the resolution of the Feb meeting outcome on Friday. We expect the committee to cut policy rates by 25 bps and retain the neutral policy stance. This is corroborated by recent progress in disinflation, muted urban spending (anecdotal evidence from FMCG quarterly results) and still soft capex cycle (currently concentrated across select sectors). In addition, a series of measurements by the RBI to enhance liquidity conditions paves the way for the beginning of an easing cycle ahead.
