Shaktikanta Das in a move that some market watchers say strengthens the outlook for rate cuts early next year. Das had been widely considered the most hawkish member of the RBI’s Monetary Policy Committee, and his departure could influence the board’s overall stance, said Shilan Shah, deputy chief emerging markets economist at Capital Economics in a note on Monday. “The appointment of Mr Malhotra could set a new direction for the RBI,” Shah added. Should inflation come down sustainably, the RBI will then have room to lower rates in an attempt to spur economic growth, after a slowdown for three straight quarters year-on-year. Economists at Capital Economics are now expecting a 25-basis-point cut in India’s repo rate during either Malhotra’s first MPC meeting in February, or at an unscheduled gathering ahead of that. The group had previously predicted a rate cut would take place in April under Das’ leadership. Economists at Citi meanwhile held to their view for a February cut. — CNBC’s Dylan Butts contributed to this story.