Mumbai: Bank of America-Merrill Lynch said the RBI will cut repo rate by 75-100 bps starting early 2015 and expects a rate cut even if Fed hikes US rates.
BofA said India vs US rate differential is already at 800 bps, far higher than average 460 bps since January 2003.
The banks adds high FX reserves hold key for rupee stability, more than United States vs India rate differentials.
Lastly, the bank said Fed tightening will contain imported inflation by stabilising commodity prices.
Zee News App: Read latest news of India and world, bollywood news, business updates, cricket scores, etc. Download the Zee news app now to keep up with daily breaking news and live news event coverage.
