Central banks in India and Australia are set to issue policy decisions this week as both countries face concerns about bad debt.
The Reserve Bank of India (RBI) will announce its decision on Tuesday and Moody’s Analytics expects the RBI will cut its policy rate by 25 basis points to 6.5 percent.
“Inflation has largely been within the central bank’s 6 percent target, and the continued fiscal consolidation road map suggests that inflation is unlikely to spike,” Moody’s Analytics said. “High-frequency indicators suggest that growth hasn’t gained momentum in recent months.”
But ANZ said in a note Friday it expects investments in India to remain subdued due to high leverage and as banks will be focused on managing their non-performing loans after the RBI set a March 2017 deadline for them to clean up their balance sheets.
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