RBI may cut interest rate by 25 bps on Friday

The RBI may trim the benchmark lending rate by 25 bps in its forthcoming monetary policy meeting, as inflationary pressures are subdued, though some experts believe the central bank is likely to keep the rate unchanged in the backdrop of better-thanexpected GDP growth of 8.2% in the second quarter.

- Business Desk

The consumer price index (CPI) based headline retail inflation is ruling below the 2% lower band mandated by the government for the last two months.

Some experts, however, believe that the RBI may continue with the pause on interest rates as economic growth has picked up, sustained by fiscal consolidation, targeted public investment, and various reforms, such as the GST rate cut, according to a PTI report on Sunday, quoting various sources .