The rate may be cut by 125 basis points, signs of change in RBI policy


RBI Repo Rate: On the economic front, more relief can be given by the Reserve Bank of India in the coming days. In the month of March, the inflation rate based on the Consumer Price Index came to the level of 3.34. This has been low in the last several years. The SBI report said that about 125 basis points can be cut by RBI in the financial year 2025-26 due to the possibility of further reduction in inflation.

On Monday, SBI report said that the RBI meetings to be held in the months of June and August could have a cut of about 75 basis points, while 50 basis points can be deducted in the second half of the financial year 2026.

Repo rate more cut possible

It is worth noting that earlier the RBI has cut a 50 -basis point amid global uncertainties, with 25 basis points in February in February and 25 basis points were cut in April.

The ABI report said that in the month of March, the multi -year lower inflation rate and the possibility of inflation continue to remain normal, the policy rate may be cut by 75 basis points in June and August. It further states that in the second half, there is a more cut of 50 basis points in the second half.

Inflation will be less

The SBI report suggested that the central bank should cut the repo by half a percent, as it will be more effective. The report said that inflation based on the Consumer Price Index has declined a sharp decline and it has come down to 67 months low in March 2025. This was possible due to rapid improvement in food inflation.

The Research Report titled ‘Inflation and Rate Cut Project Path’ of State Bank of India said that GDP (GDP) growth at current prices for FY 2025-26 is expected to be in the range of 9-9.5 percent. In such a situation, in view of low growth and low inflation, there is a good scope for cuts in policy rates.

The report said, “With the multicolored low inflation in March and the projection of general inflation, we are expecting a rate of 0.75 percent in the rate in June and August and a half percent cut in the second half of the current financial year.” In this way, the total cuts can be close to 1.25 percent. ”The report said that instead of cuting 0.25 percent, the cut of 0.5 percent will be more effective. According to the report, in 2025 dollars are expected to be within a radius of Rs 85-87.

Also read: Pakistan will be ruined only in war, India’s situation is very strong, American agency released full report of war



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