Jefferies expects 25 basis points repo rate cut by RBI this year

The Reserve Bank of India (RBI) is likely to cut the repo rate by 25 basis points this year, and cumulatively by 1 percentage point as part of its departure from steady monetary policy, said investment banking company Jefferies in a report.

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100 basis points is equal to 1 percentage point.

Jefferies’ India office expects only a 25 basis points rate cut this year to 6.25 per cent and a total of 100 basis points in the forthcoming easing cycle, the investment company said in a report.

The next RBI monetary policy review meeting is scheduled for October 7-9. The loosening of the monetary policy rates may start soon, which was kept steady in nine consecutive meetings.