RBI may cut rates by 25-50 bps as inflation eases: Report

The Reserve Bank of India may announce a rate cut of 25 to 50 basis points (bps) in the coming months as inflation continues to ease, supported by benign food prices and the impact of recent GST cuts, according to a report by Kotak Securities.

- 

The report highlighted that softening inflation, led by lower food prices and the GST rate cuts, provides room for additional monetary easing to support economic growth, despite external headwinds from tariffs and trade-related challenges. "Given benign food prices and GST cuts-led softening inflation amid external headwinds from tariff and trade-related issues, we continue to see scope for additional rate cuts of 25-50 bps to support growth," the report said.However, it added that the timing and quantum of any potential rate cut will be a key decision for the central bank to ensure maximum impact from further monetary easing. The report als