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RBI may go for 25 bps rate cut as inflation likely to remain benign: SBI Research report
['Daily Excelsior']
Daily Excelsior
The RBI reduced the key short-term lending rate (repo) by 100 basis points in three tranches beginning in February, amidst declining consumer price index (CPI) based inflation.
“Under these conditions, we expect a status quo.
If at all, at a later point in time, there is a package for exporters against the backdrop of tariffs, a rate cut could be considered,” Sabnavis said.
This suggests a status quo for the repo rate in the October 2025 policy review, in what appears to be a close call,” she said.
Dharmakirti Joshi, Chief Economist, Crisil Limited, said: “We expect that a repo rate cut could come as soon as October due to lower-than-expected inflation.