Credit Agricole: India's RBI rate cut to support the economy

Quotes from Credit Agricole

• The RBI cut the repo rate by 25bp, outside of its policy review cycle for the second time this year.
  
  
• Signs of economic weakness, faster than anticipated disinflation, 'valuable structural reforms' in the budget, and the agreement between the government and the RBI on the monetary policy frameworkprovided the backdrop of the cut.
  
  
• We continue to expect another 25bp cut during Q215 but we think that the chance is now slimmer and that, if it actually occurs, it will likely be the final one in the easing cycle.