RBI may cut rates further by 75-100 basis points in 2015

Davos: With inflation coming under control, Reserve Bank may cut interest rates further by 75-100 basis points in 2015, but challenges may appear in form of   strengthening of rupee due to global fund flows, eminent   banker Uday Kotak said. "My estimate is that RBI may ease rates by 75-100 basis   points more in the calendar year 2015. "That is the total rate cut I see coming ahead," said   Kotak, who was here to attend the World Economic Forum (WEF) Annual Meeting.  

Asked whether the base-effect was still at play in   inflation being at low levels, the Kotak Mahindra Bank chief   said, "I think inflation is pretty much under control now." Kotak, who has been a regular at the WEF summits in Davos, also said the big stimulus from European Central Bank   is going to have a significant impact for global flows   positively and Indian markets may also get greater flows.  "But, strengthening of our currency will be a challenge," he added.   

Asked whether Indian markets would get larger flows that  the record-high levels of last year, Kotak said, "There is a  good chance."  "The key issue is if these flows come and the currency   strengthens, how do we make sure that we are able to 'Make in   India' and manage a strong currency," he added. The five-day WEF meeting ended last night with a record  participation of over 2,500 global leaders, including over 100   from India.