नवीनतम
RBI may extend rate-cut cycle
MUMBAI [Maha Media]: The Reserve Bank of India (RBI) may continue its rate-cut cycle beyond August 2025 if economic growth falters, according to a report by ANZ Group. The report anticipates three more rate cuts of 25 basis points each by August 2025.
However, the forecast includes a significant risk from extreme weather conditions, which could disrupt food supply and prices, thereby influencing inflation and monetary policy decisions. Continued favorable weather might permit extending the rate-cut cycle if growth remains weak. ANZ notes that RBI's liquidity support will likely persist to enhance the rate cuts' economy-wide impact.
The report further mentions that the RBI reduced its policy rate by 25 basis points in February 2025 and maintained a neutral stance, leading to unexpected inflation declines that offer greater leeway for supporting growth. This liquidity support is crucial for stimulating borrowing and investment, which in turn boosts economic activities.
