Another 25 bps rate cut best possible option for RBI: SBI study

According to an SBI analysis published on Monday, September 22, there is justification and merit for the Reserve Bank to lower the key benchmark lending rate by 25 basis points in the upcoming monetary policy because retail inflation is predicted to stay low well into the upcoming fiscal year. Despite falling consumer price index (CPI)-based inflation, the Reserve Bank of India (RBI) has already lowered the repo rate by 100 basis points since February. The RBI paused in August after lowering the repo rate three times in a row. On September 29, a three-day meeting of the Reserve Bank Governor-led Monetary Policy Committee (MPC), which sets the interest rate, is planned. In October, the judgment will be made public.