‘RBI may go for 25 bps rate cut as inflation likely to remain benign’

RBI’s MPC is scheduled to begin a three-day brainstorming on policy rate on Monday. The decision will be announced on October 1

- OUR CORRESPONDENT

A SBI research report has pitched for a 25 bps rate cut, saying it is the ‘best possible option’ for the RBI, though some other experts opined that the central bank's rate-setting panel may again opt for status quo in its bimonthly policy to be announced on October 1.

Reserve Bank of India (RBI) Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) is scheduled to begin a three-day brainstorming on policy rate on Monday in the backdrop of the ongoing geopolitical tensions and the US imposing 50 per cent tariffs on Indian shipments.

The decision will be announced on October 1 (Wednesday).

The RBI reduced the key short-term lending rate (repo) by 100 basis points in three tranches beginning in February, amidst declining consumer price index (CPI) based inflation.

However, the central bank opted for a status quo in the August bimonthly monetary policy, taking a wait-and-watch approach to assess the impact of US tariffs and other geopolitical developments on the domestic economy.