While unexpectedly keeping rates on hold yesterday, the RBI put the onus on the finance ministry to do more of the heavy lifting to boost demand. So if we are right in thinking that the finance ministry won’t deliver significant stimulus in the next union budget, it would lay the platform for the MPC to cut rates once again in February. But that would in our view mark the end of the loosening cycle.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services