The Reserve Bank of India (RBI) is anticipated to lower the repo rate by 25 basis points to 6.25% at its policy meeting concluding Friday, marking its first rate cut in nearly five years. This decision comes as easing inflation provides the RBI with room to stimulate a slowing economy. However, the move is being closely watched against the backdrop of the rupee's record lows against the US dollar.
The Reserve Bank of India is expected to trim the interest rate by 25 basis points to 6.25% at the policy meeting concluding Friday, in what would be its first rate cut in nearly five years.
The Reserve Bank of India is poised to trim the repo rate by 25 basis points to 6.25% as it concludes its policy meeting on Friday, setting off "a shallow rate cut cycle," said Taimur Baig, chief economist at DBS Bank. "It will be interesting to see if the RBI continues with the governor's statement, apart from the monetary policy statement, as a tool of policy communication," Goldman Sachs said.
"The delay in implementation of universal tariffs by the incoming U.S. administration provides some tactical space for RBI to prioritize domestic growth ... and space to cut policy rates," said Ruhul Bajoria, an economist at Bank of America in India.by a large margin in the quarter ended September, when its grew by 5.4% — its slowest expansion in nearly two years.
INTEREST RATES RBI INDIAN ECONOMY INFLATION RUPEE
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