This recommendation is based on the current economic indicators, including subdued inflation rates and the potential benefits of further rate cuts. This decline in inflation is attributed to significant GST rate cuts and base revision effects. The RBI has already reduced the repo rate by 100 bps since February 2025, with cuts in February, April, and June. The August policy meeting saw the RBI pause rate cuts, adopting a neutral stance. SBI’s study suggests that a 25 bps rate cut in the upcoming meeting would align with the current economic conditions and project the RBI as a forward-looking central bank.