According to the report, the December inflation will likely continue to peak off to 7.3 per cent.
The Reserve Bank of India has already reduced the policy rate by a total of 75 basis points, or 0.75 per cent, since January.
The MPC headed by RBI Governor Shaktikanta Das will announce the resolution of the meeting at around noon on Thursday.
RBI policy surely cannot impact agflation, in any case.
Inflows from Europe, falling crude oil to come to the rescue if rupee cracks against the dollar.
RBI is expected to cut policy rates by 50 basis points by 2016.
To provide exporters/importers greater flexibility in risk management, RBI enhanced the limit available to exporters to 50 per cent
While rate cuts may increase churn between banks, these may not boost credit offtake meaningfully.
On Friday, the euro weakened to a near 14-month-low against the dollar, after the European Central Bank announced a fresh round of stimulus and promised more if required.
RBI is committed to bringing down retail inflation to eight per cent by January 2015 and six per cent by January 2016.
May touch 64/$ due to foreign flows slowing down
In a recent report, BofA-ML suggests investors to track these six event risks in July apart from the Greek drama
Rajan's deputy Khan cautions against early celebration of falling inflation, unhedged forex exposure.
RBI Governor Raghuram Rajan has said falling oil prices act as a cushion for CAD, adding it is time India does away with restrictions on gold imports
RBI on Monday conducted an unprecedented level of liquidity infusion to the tune of Rs 3.3 lakh crore, in which banks bid for as much as Rs 4.5 lakh crore. The central bank said it would conduct a liquidity infusion auction of Rs 1 lakh crore on Tuesday as well, to help banks tide over the liquidity crisis.
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