Nomura's Varma Sees RBI Stance Sticking to Neutral

The transcript discusses the anticipated 25 basis point rate cut by the RBI, maintaining a neutral stance due to forward-looking inflation and growth forecasts. It highlights potential dissent among RBI Board members, with some advocating for a pause and others for a larger cut. The discussion also covers the impact of rising real rates in India and the adaptive nature of inflation expectations, emphasizing the need for a forward-looking monetary policy.

What is the expected rate cut by the RBI as discussed in the first section?

• 50 basis points

• 25 basis points

• 75 basis points

• No rate cut

Why is the RBI maintaining a neutral stance despite the rate cut?

• To align with global monetary policies

• To encourage economic growth

• To allow flexibility for future decisions

• To focus on inflation control

Which RBI member is likely to vote for a pause in the rate cut decision?

• Deputy Governor Michael Patra

• Governor Shaktikanta Das

• Doctor Patra

• Professor Dholakia

What is the main concern regarding inflation expectations as discussed in the third section?

• They are irrelevant to policy decisions

• They are solely driven by food prices

• They are adaptive and may not decrease quickly

• They are too high

How does the RBI view the relationship between real rates and inflation?

• Real rates and inflation are unrelated

• Real rates are rising as inflation falls

• Real rates are decreasing as inflation rises

• Real rates are stable regardless of inflation