By Admin 
Rbi rate cut in December: The Reserve Bank of India (RBI) did not cut the repo rate in the recent monetary policy meeting. In the meeting, the repo rate was retained at 5.5 percent. This was the second consecutive time when the Reserve Bank did not change the repo rate. Meanwhile, according to estimated by global brokerage firm Morgan Stanley, RBI may reduce the repo rate in December 2025. After this, another cut is expected in February 2026. With this, by the end of the year 2026, the repo rate can come down from 5.50 percent to 5.00 percent.
On what basis brokerage estimated?
Morgan Stanley has said in his report that the Reserve Bank can adopt more generous stance in view of softening, crude oil and reduced inflation in the consumer price index. The report said that the softening of inflation has come at a time when the pace of development is weakening. This has increased the chances of relaxing rates.
If the repo rate is re -cut, then the estimated 5.00 percent rate will be the lowest policy rate in recent years. Economists say that this will reduce the cost of borrowing in the economy, will get relief on loans to families and boost new investment in housing, automobiles and infrastructure. The report further states that low rates can promote consumption and help in providing new speed to India’s development saga.
RBI will take care of these things before the rate cut
However, Morgan Stanley also said that the Reserve Bank will take care of global conditions such as fluctuations in US interest rates, commodity market trends and stability in currency before the rates are relaxed. Meanwhile, due to increasing inflation, the cuts can be either limited or it may be delayed. In its review meeting on 1 October, the RBI did not make any changes in the repo rate and retained at 5.50 percent. However, according to the IANS report, during the meeting, two MPC members supported the genering of the trend. In the coming time, there are indications of decrease in repo rate in the coming time.
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