RBI seen cutting India rates next year-JP Morgan

The Reserve Bank of India is likely to cut its benchmark bank rate in the financial year starting April 2001 due to a more stable rupee, comfortable money market liquidity, record foreign exchange reserves, and an easing bias in global interest rates, JP Morgan said.

"JP Morgan projects a 50 basis point reduction in the bank rate to 7.5 percent early in the first quarter of the next fiscal year," the securities firm said in a research report dated December 16. The RBI bank rate is the rate at