Saturday, October 10
Mumbai: Some economists are batting for an outsized rate cut-of half a percentage point instead of the customary quarter-as future price pressures appear benign and credit demand remains subdued.Economists from the State Bank of India and Piramal Enterprises are advocating a 50-basis-point (bps) reduction in the policy rates, due to be announced after the latest bi-monthly review Friday morning, even though an ET survey of a dozen bankers and economists indicates a 25 bps cut.One basis point is a hundredth of a percentage point.Currently, the repo rate-or signaling rate-stands at 6% after the central bank reduced it twice this year, by 25 bps each in February and April.Proponents of a larger rate cut by the monetary policy committee (MPC) believe doing so would revive the credit cycle and
