The Reserve Bank of India (RBI)is fairly  to slot main rates by 25 basis points, or 0.25 %, in its policy revision meeting on August 9, largely owing to benign inflation, low industrial production (IIP) growth and a good monsoon forecast, -Report by global financial services major Bank of America Merrill Lynch.

As per the BofA-ML report, a although easing of 25 bps is likely as CPI (Consumer Price Index) inflation came in at a below expected 4.8 % for March, and February IIP grew an anemic 2%.
"We have grown more confident of our call for the RBI to cut policy rates 25 bps on August 9," it said.

Meanwhile,the industry still demands rate cuts from the RBI to boost investment.
As per the global brokerage firm, “ CPI should average around 5 % in this financial year "barring extraordinaries" like a notional hike in housing price inflation due to the 7th Pay Commission or an arithmetical rise in inflation due to oil price hikes from a low base”
However, after 3 months of decreases February, industrial growth printed an anemic 2 % and is still  to appear any sustainable recovery.
"We continue to expect the RBI to cut policy rates again on August 9 after March inflation came in at a benign 4.8 per cent today," BofA-ML said

Adding, "We expect inflation to average 5 per cent in FY17."
The RBI on April 5 reduce the interest rate by 0.25 % and announced a host of measures to roll liquidity allow so that banks can add to the productive sectors and indicated accommodative stance going.