RBI's inflation, growth outlook may mean end of easing cycle, some analysts say

By Dharamraj Dhutia

MUMBAI (Reuters) -The Reserve Bank of India’s inflation and growth outlook suggest the current policy rate may mark the end of the easing cycle, six analysts said on Wednesday, after the central bank held rates steady and kept its growth forecast unchanged.

The RBI has trimmed its key policy rate by 100 basis points since February.

While a Reuters poll had predicted one more 25 basis points cut this cycle, some analysts are now reassessing that view.

“Given the characterisation of monetary policy in the August meeting and the growth and inflation forecasts, we do not find much scope for an immediate rate cut,” said Samiran Chakraborty, chief economist at Citi.

The bank, which had earlier expected a 25 basis points cut in August, now sees the repo rate holding at 5.