Rolling back rate cut expectations

...In this season of roll-backs, it’s interesting to see how quickly estimates for interest rate cuts next year are being rolled back. A few months ago economists were pencilling in cuts of 100-125 basis points, with some convinced the repo rate would hit 7% by March next year from the current 8.5%. But those calculations have been upset and, right now, no one’s willing to wager more than a 75 basis points pruning of the key policy rate with a few less hopeful: the Reserve Bank of India (RBI), they say, won’t be in a position to pare it by more than 50 basis points......................

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