India Ratings expects a 25 bps cut in the repo rate by the RBI at its quarterly credit policy review tomorrow, Dr Devendra Pant, Chief Economist and Senior Director at the rating agency said today.

Speaking to Business Line, Dr Pant said,"The impact of fiscal measures by the Government taken in the last three months will take some more time to take effect. In this backdrop, I expect a 25 bps cut. This will not lead to any increase in investment immediately. The direct impact will be on housing, autos and interest rate sensitive sectors. Investment revival will take place after clearance of bills related to land acquisition, project clearances and environment issues. The role of cabinet committee on investments is now critical, because it will operate as a single window system."

(This article was published on January 28, 2013)
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