RBI to Slash Benchmark Repo Rates by 75 bps in 2025; SBI Report Predicts Cuts SBI Research Ecowrap Forecasts 75 Basis Points Rate Cut This Fiscal Year Experts Predict CPI Inflation at 3.9% in Q4 FY25, Averaging 4.7%
SBI to Slash Benchmark Repo Rates by 75 BPS in 2025
As we stride confidently into the fiscal landscape of 2025, a significant shift in monetary policy is on the horizon. According to a recent report by SBI Research, the Reserve Bank of India (RBI) is set to reduce the benchmark repo rates by a total of 75 basis points (bps) throughout the fiscal year. This forecast suggests a 25 bps cut during each of the Monetary Policy Committee (MPC) meetings in April, June, and October.
Understanding the Implications of Rate Cuts
The anticipated cuts are expected to have a ripple effect across various sectors of the economy. Lowering the repo rate typically results in cheaper borrowing costs for businesses and consumers alike, stimulating economic growth. As interest rates decline, expect to see increased consumer spending and investment, which can further boost economic activity.
CPI Inflation Forecast
In terms of inflation, experts project that the Consumer Price Index (CPI) will hover around 3.9% in the fourth quarter of FY25, with an average inflation rate of 4.7% throughout the fiscal year. This moderate inflation outlook provides a conducive environment for the RBI to implement rate cuts, ensuring that the economy remains buoyant without overheating.
What This Means for You
As a consumer or business owner, these anticipated changes in the repo rate could translate into lower EMIs, better loan terms, and increased purchasing power. If you’re considering making a significant purchase or investment, now might be the ideal time to explore your options.
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