TIL Desk/Business/Mumbai/ With economic growth likely to slow down in the March quarter 2019, the RBI may cut repo rate by 25 basis points in the upcoming monetary policy review, analysts say. The growth data for the fourth quarter 2018-19 is to be released on Friday. According to a DBS Group Research report, the economic growth is likely to moderate to 6.1 per cent, slowest in over seven quarters, from 6.6 per cent last year same period.
The gross value-added growth is likely to ease to 6 per cent from 6.3 per cent in the previous quarter, it said. The Reserve Bank will announce its second bi-monthly monetary policy for the current fiscal on June 6. This will be the first policy meet of the central bank after the Lok Sabha elections 2019.
“Close on the heels of the GDP outcome, the RBI policy committee will decide on rates on June 6. “We look for a 25 basis points cut in the repo rate to 5.75 per cent, taking cumulative cuts in 2019 to 75 basis points,” the DBS Research report said. In 2019, the RBI cut repo rate by 25 basis points each in its February and April monetary policy reviews.
