SBI Research Pushes for 25 bps Repo Rate Cut Ahead of RBI Monetary Policy Meeting
As India braces for the upcoming monetary policy review, SBI Research has recommended a 25 basis points (bps) cut in the repo rate , citing benign inflation and global headwinds. While some economists expect a status quo, the debate underscores the delicate balance between inflation management, growth, and global shocks like US tariffs. SBI Research: Why a Rate Cut Now? According to SBI Research, there is both “merit and rationale” for the Reserve Bank of India (RBI) to reduce the repo rate by 25 bps. The key reasons include: Retail inflation under control , with expectations that it will remain below the RBI’s target of 4%. GST rationalisation measures , which are expected to keep prices suppressed. Impact of 50% US tariffs on India , already visible in slowing economic activity. Diverging Views: Economists Weigh In While SBI Research makes a strong case for easing, not all economists agree: Bank of Baroda (Madan Sabnavis) : Warns that GDP growth is still projec...