The Reserve Bank of India is likely to concrete its value as Asia’s most dovish central bank with a third straight interest-rate cut Thursday.
Governor Shaktikanta Das led six-member monetary policy committee will lessen the repurchase rate by 25 basis points to 5.75 percent on Thursday, say 31 of 43 economists surveyed by Bloomberg, while three are penciling in 50 basis points cut.
The RBI may also switch its stance to accommodative from neutral, given that expectations are growing for the Federal Reserve to slash rates this year.
India is among central banks across Asia shifting to looser monetary policy to boost their economies amid risks from the US-China trade war. Inflation that’s stayed close to the lower end of RBI’s 2-6 percent band for six months has given policymakers room to support economic growth.
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The policy decision will be announced at 11:45 a.m. in Mumbai, followed by a press conference 15 minutes later by Das.