Quotes from Capital Economics:
-The weakness of the rupee alone is unlikely to be the deciding factor on RBI moves to loosen policy. Given that consumer price inflation has dropped to its slowest pace since the launch of the series in January 2012 and that economic grow this still weak by past standards, we think that interest rate cuts will come onto the agenda much sooner than most seem to expect, perhaps as early as next week’s policy review.
-We have been arguing since Q1 that policy could be loosened before the end 2014, when the vast majority of analysts weren’t expecting rate cuts until the second half of 2015 or 2016.
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