Goldman Sachs sees India rate cut next month

Below target: A guard stands outside RBI headquarters in Mumbai. India’s inflation eased to an 18-month low of 2.2 in December, below the RBI’s medium-term target of 4. — Reuters

MUMBAI: Goldman Sachs Group Inc expects India’s central bank to cut interest rates by a quarter percentage point in February, the latest to add its voice to a chorus of calls for monetary policy easing.

The Wall Street bank said lower inflation projections, and expectations of a slower pace of US policy rate hikes prompted it to shift its call from a previous forecast of no change in February.