RBI- Big news for common people of India. RBI is set to give big relief to everyone. The Reserve Bank of India may cut the repo rate once again in the month of October. This time the RBI may cut the repo rate by 25 basis points. This will directly benefit the common man’s pocket. Taking loans from banks may become cheaper in the coming days.
Global brokerage firm Morgan Stanley believes that RBI may again cut the repo rate by 25 basis points in October. However, the Reserve Bank of India may keep the interest rates the same in the next meeting in August. If inflation reduces further, the possibility of rate cuts may increase. Repo rate is the rate at which RBI lends to banks, and its reduction can reduce the cost of loans.
Inflation is coming down
According to the report of the global firm, inflation has been consistently below 4% since the month of February this year. At the same time, it has decreased further in the month of June. Which is much less than in the past several years. Food prices, especially wheat and pulses, have come down by 1.1% compared to last year. The reason for this is good harvest, favorable weather and government measures such as stock limits and availability of cheap vegetables. According to the report, if this trend continues, RBI may cut interest rates in October, but it will first wait for more signs of economic growth.
More reports on repo rate?
HSBC has said that there will be no change in the repo rate in the Monetary Policy Committee meetings to be held in August and October 2025. Currently the repo rate is stable at 5.50%. However, a cut in the repo rate is expected after this, and it may reach 5.25% by the end of 2025. This estimate will depend on the policies of the Reserve Bank of India and the economic conditions.