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August Inflation Above 2% Dents Hopes of October Rate Cut: SBI

The Business Guardian

|

September 14, 2025

With August inflation slightly above the 2 percent mark, hopes for a rate cut in October have dimmed, said SBI Research in its latest report.

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August Inflation Above 2% Dents Hopes of October Rate Cut: SBI

The report added that the rate cut in December also appears uncertain, especially when weighed against the stronger-than-expected growth estimates for the first two quarters of the fiscal year.

"With August inflation print a tad higher than the 2 percent mark, a rate cut in October looks onerous. Even a rate cut in December looks a little difficult if growth numbers for Q1 and Q2 (estimates) are taken into consideration," the report added.

The report added that changes in GST rates on services could reduce inflation on non-food items by another 40-45 basis points, based on a 50 percent pass-through.

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यह कहानी The Business Guardian के September 14, 2025 संस्करण से ली गई है।

हजारों चुनिंदा प्रीमियम कहानियों और 10,000 से अधिक पत्रिकाओं और समाचार पत्रों तक पहुंचने के लिए मैगज़्टर गोल्ड की सदस्यता लें।

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