RBI Likely to Cut Repo Rate Amidst Easing Inflation

The Reserve Bank of India (RBI) is expected to cut the repo rate by 25 basis points during its meeting from February 5-7, a move that would be the first in nearly five years. Economists anticipate the decision, influenced by easing retail inflation, which dropped to a four-month low of 5.22% in December. This reduction aims to complement the Union Budget's initiatives to boost consumption-led demand growth. The decision of the six-member Monetary Policy Committee will be announced on Friday (February 7). According to an SBI economic report, further cumulative rate cuts could reach at least 75 basis points, potentially occurring in February and April 2025. 

 

Source: Indian Express