RBI may cut repo rate by 25 bps on February 7: Bank of Baroda
monetary policy announcement on February 7, according to a report by Bank of Baroda.
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The report suggested that inflation, which remains the primary focus of monetary policy, is showing signs of moderation, allowing the RBI to consider a rate cut.
It said, «balancing and counterbalancing all macro and geopolitical factors, we believe there remains space for 25bps rate cut by RBI in the upcoming policy.»
The report highlighted that inflationary pressures have eased, mainly due to a decline in the prices of essential vegetables such as tomatoes, onions, and potatoes. The improved supply of these items has contributed to lower price volatility in the Consumer Price Index (CPI).
Also Read: New RBI Governor set to begin interest rate cuts as global risks escalate
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