Mumbai: India's central bank is likely to cut interest rates by another 25 basis points in 2019, following three cuts of a similar quantum so far, due to weak growth momentum and inflation remaining within targeted limits, Fitch Ratings said on Monday. The Reserve Bank of India (RBI) cut the repo rate to 5.75% on 6 June, its third cut in 2019, while also changing its policy stance to "accommodative," after data showed the economy growing at its slowest in over four years. "We expect another 25 bps cut later in 2019, which will push the policy repo rate down to 5.50%," Fitch wrote in its Global Economic Outlook report. "Weaker momentum has been mainly domestically driven, though export growth has also faltered more recently". "We see growth for 2019/20 printing at 6.6%, before stepping up to 7.1% in 2020/21 and 7.0% in 2021/22".

Source: Mint June 17, 2019 13:18 UTC