RBI can cut repo rate only in financial year 2025: SBI economist

RBI can cut repo rate only in financial year 2025: SBI economist

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Chennai (Uttam Hindu News): A top economist of State Bank of India (SBI) has said that the Reserve Bank of India (RBI) can cut the repo rate only in the third quarter of financial year 2025. In a research report, the group’s chief economic advisor Soumya Kanti Ghosh had also said that RBI will not change its stance for the time being. The first meeting of the Monetary Policy Committee (MPC) for this financial year will be held this week.

Repo rate is the rate at which RBI lends to banks. This rate is currently 6.5 percent. According to Ghosh, inflation is due to food prices. Going forward, the impact of food supply will be on food inflation. Inflation is likely to remain slightly above 5 percent in the remaining months of fiscal year 2024.

He also said that inflation is expected to decline till July this year, but after that it will rise again to 5.4 percent in September, after which it will decline again. This average is likely to be 4.5 percent for the entire financial year 2025.

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