The Reserve Bank may shift the monetary policy stance to “neutral” by June and deliver rate cuts starting August this year, a Japanese brokerage said on Monday. Pointing out to softer core inflation ‘or price rise in items excluding food and fuel’ in the data released for December, Nomura said there is a need for the policy to pivot towards an easier regime after the extended pause. The brokerage reiterated its earlier view of rate cuts being expected from August onwards, and pegged the quantum of cuts at 1 percentage point. “We expect 1 per cent of rate cuts cumulatively starting August, with a change of stance to ‘neutral’ in Q2, with…
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RBI may shift policy stance to neutral by June: Nomura, CFO News, ETCFO
