RBI may announce 25-50 bps rate cut amid softening inflation: Report

The Reserve Bank of India may announce a rate cut of 25 to 5O basis points (bps) in the coming months as inflation continues to ease, supported by benign food prices and the impact of recent GST cuts, according to areport by Kotak Securities.

- AGENCIES

The report highlighted that softening inflation, led by lower food prices and the GST rate cuts, provides room for additional monetary easing to support economic growth, despite external headwinds from tariffs and trade-related challenges.

“Given benign food prices and GST cuts-led softening inflation amid external headwinds from tariff and trade-related issues, we continue to see scope for additional rate cuts of 25-50 bps to support growth,” the report said.