HSBC forecasts Repo cut by 25bps

New Delhi: Since inflation is set to remain well below target for the foreseeable future, HSBC Global Investment Research on Monday projected that the RBI will cut rates by 25 bps during its monetary policy committee (MPC) meeting on December 5 -- taking the policy repo rate to 5.25 per cent.

Growth has been strong so far, benefitting from the front loading of government spending and GST-cut led retail spending.

However, the November Flash manufacturing PMI (56.6) indicated that GST-led boost may have peaked with the overall new orders coming in soft, said the report.