Kotak Mahindra asset sees one more India rate cut

Bloomberg

The Reserve Bank of India will have scope to cut benchmark interest rates once again as growth in Asia’s third-largest economy slows and consumer-price gains stay within
the central bank’s target range, according to Kotak Mahindra Asset Management Co.
“You have a confluence of favorable CPI, lower GDP growth and a necessity to keep rates stable with easing bias,” said Lakshmi Iyer, the Mumbai-based chief investment officer for debt at the money manager. “The scope for one rate cut by March 2018 is definitely there.”
Calls for further monetary easing have resurfaced after data on Aug. 31 showed that economic growth in the April-June quarter was the slowest since 2014. The RBI last cut the key repurchase rate to 6 percent on August 2.