The apex bank of India, RBI is expected to cut down its key repo rate to a four year low on Tuesday to help the domestic economy, when consumer inflation is recorded at a recent low.
This move, which is a complete U-turn on RBI Governor Rajan’s earlier statement, could also be a result of the intense political pressure on him to gain voter confidence, specially in light of the impending Bihar polls.
Earlier, this year RBI already eased the policy rate by 75 bps and now it has cut the repo rate by 25 basis points to 7.00 percent.
