RBI May Cumulatively Cut Key Interest Rate in 125-150 bps Range This Fiscal: SBI Study

The Reserve Bank may cumulatively cut the key interest rate in the range of 125-150 basis points this fiscal amid benign inflationary patterns, an State Bank of India (SBI) Research report said on Monday.

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NEW DELHI:

The study suggested that the central bank should go for "jumbo" rate cuts of 50 bps as it would be more effective.

The sharp moderation in consumer price index-based inflation, hitting a 67-month low of 3.34 per cent in March 2025 due to sharp correction in food inflation, bodes well for lowering the average CPI headline forecast for FY2025-26 below 4 per cent now (with below 3 per cent in Q1FY26), the report said.