BofA expects RBI to cut repo rate by 25 bps in February MPC meeting

The Reserve Bank of India (RBI) may be gearing up for its first rate cut in nearly two years. Bank of America (BofA) Securities anticipates a 25 basis point reduction in the repo rate at the February Monetary Policy Committee meeting. This forecast comes as inflation is expected to moderate and align closer to the RBI's 4% target. BofA projects a total of 100 basis points in cuts throughout the cycle, potentially bringing the repo rate down to 5.50% by the end of 2025. This move could signal a shift towards supporting economic growth as inflationary pressures ease.

Source: Financial ExpressThe Reserve Bank of India (RBI) may be gearing up for its first rate cut in nearly two years. Bank of America (BofA) Securities anticipates a 25 basis point reduction in the repo rate at the February Monetary Policy Committee meeting. This forecast comes as inflation is expected to moderate and align closer to the RBI's 4% target. BofA projects a total of 100 basis points in cuts throughout the cycle, potentially bringing the repo rate down to 5.50% by the end of 2025. This move could signal a shift towards supporting economic growth as inflationary pressures ease.