Won’t rule out a rate cut by RBI tomorrow: Mythili Bhusnurmath

In a chat with ET Now, Mythili Bhusnurmath, Consulting Editor, ET Now, shares her views on whether the RBI will go in for a rate cut or not in its policy tomorrow. Excerpts



Nikunj Dalmia: Every man and his dog are betting on a rate cut by the RBI Governor, but the consensus view is that we may get a status quo tomorrow. What's your take?

Mythili Bhusnurmath: I would not rule out a rate cut because the RBI Governor in his very first speech in September 2013 said that the central bank would never say ‘never’. Moreover, as of now, there is both pressure and a very clear logic for going ahead with a rate cut since prices are bound to fall even further.

Though, yes, the consensus is that the RBI governor will keep status quo on rates tomorrow, more so, everyone thinks that he has a reputation to maintain as the ‘inflation warrior’. However, when the logic clearly seems to suggest that there might be a case for a rate cut, I do hope that he exercises his judgement well for all of us, and goes ahead with a rate cut.