💨 Abstract

The article discusses the expectation of more aggressive rate cuts by the Reserve Bank of India (RBI) due to lower than anticipated inflation and weak economic growth. The overnight indexed swap (OIS) markets are pricing in over 50 basis points of rate cuts over the next 12 months. Analysts expect the RBI to infuse more liquidity into the banking system alongside the rate cuts to ensure quicker transmission of lower rates to the broader economy.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖