An RBI rate cut is now seen as a given, some analysts say.
Debate in markets shifting to the extent of rate cuts, they add.
The analysts expect Reserve Bank of India (RBI) to cut rates by 50 bps at one stroke sometime in Feb-April.
“Since the RBI believes that its actions will have a powerful signaling impact on investment sentiment, the first cut may well be 50 bps,” Deutsche Bank says in a note.
Deutsche, Citi expect 100 bps in rate cuts between Feb 2015 and March 2016.
1-year OIS down 67 bps since end of September.