MNI RBI Preview: RBI to Cut, Signal End to Easing

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Despite market pricing suggesting a cut is not a foregone conclusion, we forecast the RBI to cut rates at its last meeting of the year, whilst signaling and end to the easing cycle due to:

• Inflation at cyclical lows and risking deflation.
• RBI not wanting inflation to undershoot their FY forecast further.
• Tailwinds showing up in the October data.
• Governor has given a steer on rates, possibly to allow currency markets to adjust.