The Reserve Bank of India (RBI) may start cutting policy rates in December 2025, with another reduction expected in February 2026, according to a projection by global brokerage firm Morgan Stanley reported by IANS. The forecast suggests the repo rate, which currently stands at 5.50 per cent, could gradually ease to 5.00 per cent by late 2026.

Morgan Stanley said a combination of moderating consumer price inflation and greater stability in crude oil and food prices would give the central bank room to shift towards a more accommodative stance. Softer inflation, it noted, comes at a time when growth momentum has been weakening, strengthening the case for gradual easing. If realised, the projected 5.00 per cent repo rate would mark the lowest policy rate in recent years. Economists say this w

See Full Page