What's the story

A recent report by the State Bank of India (SBI) has recommended a 25 basis points (bps) cut in the repo rate for the upcoming Reserve Bank of India (RBI) monetary policy meeting. The suggestion comes amid expectations of benign inflation. However, most economists expect the Monetary Policy Committee (MPC) to maintain the status quo when it announces its decision on October 1.

Rate reduction

'Best possible option'

The SBI report has described a 25bps rate cut as the "best possible option" for RBI. This comes after the central bank had slashed the key short-term lending rate (repo) by 100bps in three installments since February, amid falling consumer price index (CPI)-based inflation. However, some experts believe that the MPC may choose to maintain its current st

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