Mint Survey Predicts RBI Cutting Rates to Spur Growth
According to a survey conducted by Mint, the Reseve Bank of India (RBI) may cut interest rates by 25 basis points (bps) in order to boost the flagging economic growth in the after of demonetization.
The survey conducted among 14 economists predicted major policy shifts to restore normalcy in the country’s economy which has been reeling under the cash crunch since the government announced high value notes invalid on November 8 this year.
According to reports, the benchmark 10-year government bond’s yield has fallen 55 bps.
The RBI has asked the banks to temporarily increase the share of deposits parked with it since there’s no dearth of liquidity in the system.