RBI may cut repo rate in April 25 basis points: India ratings

India Ratings and Research said the last day that the Reserve Bank of India (RBI) Monetary Policy Committee can cut the major policy rate repo by 0.25 percent in its review meeting next month with the intention of accelerating economic growth.

Devendra Kumar Pant, Chief Economist and Public Finance Head of India Ratings, said, “We hope that in the financial year 2024-25 gross (headline) inflation will be reduced to 4.7 percent. In the financial year 2025-26, there may be a total cut of up to 0.75 percent in monetary policy. ”

He said that however, if the impact of US counter -duty is more than expected, then the RBI can relax more on the monetary policy front.

RBI’s first MPC meeting will be held on 7-9 April

Let us know that the RBI Monetary Policy Committee will have six meetings in the next financial year 2025-26. The first meeting is to be held from April 7 to 9.

The RBI did not make any changes in the major policy rate repo for a long time due to high inflation. The central bank increased the policy rate by 2.50 percent to 6.5 percent between May, 2022 and February 2023. In February 2025, it was reduced by 0.25 percent to 6.25 percent.

Retail inflation estimated to fall below 4% in March quarter

India Ratings hopes that retail inflation in the March quarter of FY 2024-25 will fall below four percent after a gap of 21 quarters. He is expected to cut a total of 0.75 percent in a total policy rate three times in FY 2025-26 in FY 2025-26.

The rating agency said that the details of MPC’s meeting held in February 2025 show that the RBI is aware of the slow growth. This suggests that low and stable inflation is the main goal of RBI, but monetary policy will be focused on supporting growth through monetary policy.