Market sees RBI cutting rates 50 bps by Sep

The governments seriousness about narrowing its fiscal deficit, coupled with the weak gross domestic product (GDP) numbers, might prompt the Reserve Bank of India (RBI) to cut interest rate later this month, market participants said. With GDP growth slowing to 4.5 per cent in the third quarter and Finance Minister P Chidambaram pegging fiscal deficit at 4.8 per cent of GDP in 2013-14, after 5.2 per cent this year, the Street expects RBI to cut repo rate 50 bps, in two tranches, before the end of the first half of 2013-14 the first, of 25 bps, on March 19...........

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