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HSBC: RBI to cut rates by 40bps in April-June meetings, USD/INR bounces-back to 73.50

In the view of the analysts at HSBC, the Reserve Bank of India (RBI) is likely to deliver a big rate cut in its April meeting to combat the coronavirus impact.

Key quotes

"Expect cumulative 40bps of India rate cuts in April-June, taking repo rate to 4.75%.

Expect bulk of India monetary easing in April meeting, accompanied by liquidity measures.

India Govt. may end up with wider fiscal deficit of about 3.7% of GDP in FY21."            

USD/INR heads back towards 16-month top

USD/INR bounces-back a dip to 73.31 reached in the opening trades, as the bulls briefly regain the 73.50 level.

The spot trades close to the 16-month high of 73.632 recorded on Wednesday.

USD/INR technical levels to watch

 

FOMC to make three 0.25% cuts by June - Westpac

Bill Evans & Elliot Clarke, Analysts at Westpac, have revised their forecast for the US FOMC, with 0.25% rate cuts in March, April, and June. Key quot
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GBP/USD: Buyers aim for 1.2900 with eyes on BOE Governor Mark Carney Speech

While following its three-day winning streak, GBP/USD registers 0.04% gains to 1.2875 ahead of the London open on Thursday.
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