New Delhi, May 22 -- The Reserve Bank of India (RBI) is expected to go for deeper interest rate cuts as part of its policy response to slower economic growth and controlled inflation, according to a report by Morgan Stanley.

The report said that the policy approach is likely to remain countercyclical, meaning the RBI would take steps to support the economy when growth slows down.

It said, "We expect the RBI to respond with a deeper easing cycle, premised on slower growth, while inflation remains under control."

Morgan Stanley expects the central bank to carry out a total rate cut of 100 basis points (bps) in this easing cycle. Out of this, two more rate cuts of 25 bps each are expected going forward.

It also expected the RBI to bring ...