RBI Likely To Cut Rates Amid Slowing Growth, Easing Inflation: Report

The Reserve Bank of India (RBI) is expected to continue reducing the repo rate as economic growth faces potential headwinds and inflation is likely to fall in the central bank's target range, according to a report by HDFC Mutual Fund.

- TBG NETWORK

The report highlighted that global growth momentum is at risk of slowing, particularly as economic conditions in the US begin to show signs of softening.

The report noted that while US economic growth has remained relatively stable, recent data points, including Purchasing Managers' Index (PMI), consumption spending, and the housing sector, indicate a gradual slowdown.

It said, "Policy uncertainty and escalating trade tensions under the new US administration might weigh on growth over time. Thus, there is increasing risk of global growth momentum decelerating".