Archive · 23 Sep 2025
SBI Recommends Rate Cut Amidst Benign Inflation Forecast
SBI Research suggests the Reserve Bank of India (RBI) should lower interest rates by 25 basis points.
They believe inflation will remain low, potentially below 4% in fiscal year 2026-27.
SBI expects CPI inflation to decline further due to GST rationalization.
The RBI paused rate cuts in August.
The Monetary Policy Committee (MPC) will meet on September 29 to decide on the interest rates, with the decision announced on October 1.
SBI Research recommends a 25 basis point rate cut by the RBI.
The research cites expectations of benign retail inflation in the next financial year.
CPI for fiscal 2026-27 is expected to remain around 4% or less.
The RBI paused rate cuts in August.
The Monetary Policy Committee (MPC) will meet on September 29.
- Who
- SBI Research, RBI
- What
- Potential RBI interest rate cut
- When
- Meeting on September 29, decision on October 1
- Where
- India
- Why
- To manage inflation and monetary policy
SBI Research
Unstated Opposing Views
Interest Rate Policy
SBI Research
Advocates for a 25 bps rate cut.
Unstated Opposing Views
Unstated. Assumed to potentially favor maintaining or raising rates.
- SBI Research Recommendation
- RBI should reduce key benchmark lending rate
- Proposed Rate Cut
- 25 basis points
- Meeting Date
- September 29
- Decision Announcement Date
- October 1
- CPI Forecast FY27
- Tracking around 4% or less
Sources
After GST & Income Tax Relief, Will RBI MPC Offer Another Respite To Common Man Next Week?
From equity, gold to bonds — How should investors allocate funds in these asset classes? Explained
Another 25 bps rate cut best possible option for RBI: SBI study
Government Bonds End Flat as Market Awaits Second-Half Borrowing Plan; RBI Rate Decision in Focus
Banking system surplus liquidity drops to ₹7,072 cr; RBI CRR cut and VRR auction to provide relief
Sept Rate Cut Is Best Option For RBI, Says SBI Research
