Mumbai, Feb 11: The Reserve Bank of India (RBI) may cut interest rates further by 50 basis points (bps) in 2025 and shift its stance from “neutral” to “accommodative,” according to a report by Bank of Baroda.The report suggested that the central bank has entered a rate-cut cycle, and more reductions are expected, though the exact timing remains uncertain.
It said “As RBI embarks upon the rate cut cycle, it can be expected that more cuts are also on the cards, while the timing can be debatable. Cumulatively, we are pricing in 75bps cut in this calendar year”.
The RBI recently reduced the repo rate by 25 bps to 6.25 per cent, marking the first rate cut in five years.
The decision, taken unanimously by the Monetary Policy Committee (MPC), also lowered the Standing Deposit Facility (SDF) rate to 6 per cent and the Marginal Standing Facility (MSF) rate to 6.5 per cent.
