The RBI is likely to lower the repo rate by 25 basis points attributed to persistent downside surprises in headline Consumer Price Index inflation in its upcoming monetary policy committee meeting, Morgan Stanley in its latest report.

A 25 bps reduction would bring the repo rate down to 5.25%, which the report identifies as the terminal policy rate for the current easing cycle.

Advertisement

Morgan Stanley noted that the RBI is expected to proceed cautiously.

Following the December meeting move, the central bank is projected to take a data-dependent, ‘wait and watch’ approach, evaluating the combined effects of its policy easing across interest rates, liquidity management, and regulatory adjustments.

This period of assessment will help the RBI gauge the evolving trends in domestic gro

See Full Page