The Reserve Bank of India (RBI) should go for a 25 basis points (bps) cut in the key policy rate, a research report by the State Bank of India (SBI) said.

The report called it the “best possible option” ahead of the Monetary Policy Committee’s (MPC) bi-monthly review due on October 1.

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The MPC, headed by RBI Governor Sanjay Malhotra, will begin its three-day deliberations on Monday amid heightened geopolitical tensions and the recent move by the US to impose 50 per cent tariffs on Indian shipments. The policy outcome will be announced on Wednesday.

According to SBI’s report, there is “merit and rationale” for a 25 bps reduction in the repo rate this time, as retail inflation is expected to remain subdued even in the next financial year

While the country’s largest lender h

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