'RBI may cut rates more; 75-100 basis points reduction likely in 2015'

Posted By: PTI
Subscribe to Oneindia News

Davos, Jan 25: With inflation coming under control, Reserve Bank may cut interest rates further by 75-100 basis points in 2015, but challenges may appear in form of strengthening of rupee due to global fund flows, eminent banker Uday Kotak said.

'RBI may cut rates more; 75-100 basis points reduction likely in 2015'
"My estimate is that RBI may ease rates by 75-100 basis points more in the calendar year 2015.

"That is the total rate cut I see coming ahead," said Kotak, who was here to attend the World Economic Forum (WEF) Annual Meeting.

Asked whether the base-effect was still at play in inflation being at low levels, the Kotak Mahindra Bank chief said, "I think inflation is pretty much under control now."

Kotak, who has been a regular at the WEF summits in Davos, also said the big stimulus from European Central Bank is going to have a significant impact for global flows positively and Indian markets may also get greater flows.

"But, strengthening of our currency will be a challenge," he added. Asked whether Indian markets would get larger flows that the record-high levels of last year, Kotak said, "There is a good chance."

"The key issue is if these flows come and the currency strengthens, how do we make sure that we are able to 'Make in India' and manage a strong currency," he added.

The five-day WEF meeting ended last night with a record participation of over 2,500 global leaders, including over 100 from India.


Please Wait while comments are loading...