The lone economist who predicted the Reserve Bank of India’s out-sized interest rate cut on Friday expects another smaller reduction before the central bank hits a pause.

By Bharath Rajeswaran (Reuters) -Indian shares erased early losses on Friday, after the Reserve Bank of India cut its key repo rate by a larger-than-expected 50 basis points to support economic growth.

India's central bank has lowered interest rates by a deeper-than-expected half a percent - the third cut in a row amid falling inflation and lower growth in Asia's third largest economy. It also increased the amount of liquidity - or supply of money - available in the system.