RBI will speed up growth rate by RBI’s reduction of 25-50 basis points: Report

In order to speed up the growth rate by the Reserve Bank of India (RBI), the repo rate can be cut up to 25-50 basis points. Apart from this, many measures can also be applied to increase liquidity. This information was given in a report released on Monday.

According to the report by MK Global Financial Services, “Repo rate cut cycle started as expected during the Central Bank’s Monetary Policy Committee (MPC) meeting in February. Mpc’s minutes show that most of the members had a comprehensive equality.”

Repo rate likely to decrease by 5.7 percent

The report has expressed the possibility that the repo rate may be reduced by 25-50 basis points to 5.7 percent in the coming time by the central bank. In the minutes of the February meeting, equality was seen in the members’ opinion and all emphasized the need to cut the repo rate to support development.

How much can the repo rate be cut?

According to the report of Kotak Research, the RBI’s rising tolerance towards weakness of Indian rupee and the growing economy towards 4 percent inflation target is expected to further cut the repo rate in FY 2026 by 25-50 basis points.

At the same time, Crisil has expressed the hope that RBI can cut the repo rate by 50-75 basis points in FY 2025-26.

The report of the Global Brokerage firm City said that earlier this month, the Reserve Bank of India had cut the repo rate by 25 basis points, and there is a possibility of cuts by 50 basis points in the coming time.

Development will gain speed due to repo rate cut

In order to speed up the country’s growth rate, earlier this month, RBI Governor Sanjay Malhotra had reduced the repo rate by 25 basis points to 6.25 percent. During this time he had said that inflation has declined and it is expected to be gradually in accordance with the RBI target.

The RBI’s Monetary Policy Committee (MPC) met from 5 February to 7 February to review the repo rate, which was announced by RBI Governor Sanjay Malhotra. After about five years, the central bank has cut interest rates.

Repo rate decreased for the first time since May 2020

It has come to 6.25 percent after the RBI reduced the repo rate by 0.25 percent, which was 6.50 percent earlier. Earlier, RBI reduced the repo rate to 4 percent in May 2020. Experts believe that loans will be cheap due to further cuts in repo rate, which will promote economic activities and strengthen the growth rate.