New Delhi, Dec 6 || The Reserve Bank of India’s (RBI) 25 bps repo rate cut and its dovish stance creates scope for further easing in FY27 if growth weakens, while ongoing foreign‑exchange depreciation could improve export competitiveness, a report has said.
The report from HSBC Global Investment Research welcomed the RBI's plans to infuse domestic liquidity in December, saying it could infuse about Rs 1.45 trillion of liquidity.
The RBI unveiled plans of Rs 1 trillion of open market operations purchases and a a 3-year USD/INR buy-sell swap of $5 billion.
HSBC said that its inflation forecasts are about 50 basis points lower than the RBI’s — roughly 3.5 per cent for H1FY27.
The firm forecasted inflation to remain below 4 per cent in FY26 and FY27.