RBI Repo Rate Cut Expected in February: Foreign Brokerage Report

• A foreign brokerage report suggests RBI may cut the repo rate by 0.25% in its February 6 Monetary Policy Review.
• Economists at Bank of America predict the cut due to subdued inflation and potential weakening economic growth.
• The report anticipates the repo rate could drop to 5.25% and a significant liquidity infusion into the system.
• RBI recently announced a liquidity infusion of over 2 trillion rupees, indicating strong support.
• The central bank might also raise its GDP growth projections, with inflation expected to remain low.

Why It Matters: RBI is likely to cut repo rates by 0.25% in February, coupled with significant liquidity infusion.