The on-going weakening investment activity resulting in slowdown in production and imports of capital goods, led RBI to lower its GDP growth projection at 7.2 per cent for FY 2019-20. “CARE Ratings expect 25-50 bps rate cut during the year given that RBI has lowered its projections for inflation and economic growth but will be data driven. We are expecting the retail inflation to move towards four per cent in FY2020 and GDP growth to be around 7.1 per cent in the same period,” stated CARE ratings in its monetary policy review. Agreeing with it, Rajni Thakur, Economist, RBL Bank, said, “The forward guidance for growth and inflation remains mixed and indicates shallow cuts here and there and not a cut cycle for now. At this point, RBI seems to be more focused on the efficacy of rate cut and its transmission to the end borrowers and we expect to see more action on the liquidity front than rates in the current cycle.”