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SBI Research Predicts Aggressive Rate Cuts by RBI in FY26

The Business Guardian

|

May 06, 2025

The Reserve Bank of India (RBI) is likely to have an aggressive rate cut trajectory for the current fiscal year (FY26), driven by the significant moderation in inflation, said a report by SBI Research on Monday.

SBI Research Predicts Aggressive Rate Cuts by RBI in FY26

"We expect rate cuts of 75 basis points in June and August (H1) and another 50 bps cut in H2 i.e. cumulative cuts of 125 bps going forward" said the report.

The report highlights that the Consumer Price Index (CPI) inflation has hit a 67-month low of 3.34% in March 2025, primarily due to a sharp correction in food inflation.

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