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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Rbi on indian economy: The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.5 percent, keeping in mind the existing domestic and global conditions. Governor Sanjay Malhotra announced this at a press conference after a three -day Monetary Policy Committee (MPC) meeting on Wednesday. He informed that the attitude of monetary policy has been kept neutral, which means that the central bank will maintain flexibility in rates according to the changing economic situation. Let us know ten big things of RBI Governor Sanjay Malhotra-

1-RBI, while presenting the economic picture of the country, has increased the estimate of GDP growth from 6.5 percent to 6.8 percent. This is definitely good news for the country, because since the American high tariff, the economic front is facing challenges. While the estimate of retail inflation has been reduced from 3.1 percent to 2.6 percent. This is the second consecutive time when there is no change in the repo rate.

2- Governor Malhotra said that due to the repo rate being stable, there is no possibility of change in interest rates of housing, vehicles and other retail loans at the moment.

3-He also informed that from February to June this year, RBI has already reduced the repo rate by 1 percent, due to which there has been a decrease of 0.58 percent in the borrowing cost of new loans.

The 4-RBI further stated that India’s foreign exchange reserves have reached $ 700.2 billion, which is sufficient for imports of about 11 months. Also, in the second quarter of the current financial year, domestic economic activities are expected to be raised.

5-Governor admitted that challenges remain globally, but better monsoon, GST rate cuts and other policy measures will lead to inflation and economic growth will gain momentum.

6-Central bank believes that low inflation and monetary softening will lead to both investment and consumption.

7-Now it is clear that the RBI is in “Weight and Watch” mode-that is, at the moment the direction and global situation of the economy will be monitored with stable rates.

GST 2.0: Taking a big step towards speeding up the country’s economy, the central government has made a big change in GST. Earlier, four slabs were kept in GST 1.0, but now it has been reduced to only two slabs. This new structure will be applicable from 22 September 2025. However, the state governments have expressed concern about their revenue loss about this change.

According to the government estimate, there may be a loss of about Rs 48,000 crore annually based on the consumption pattern of 2023-24. Revenue Secretary Arvind Srivastava said in a statement to news agency IANS that the central government may have to bear such a burden.

What do brokerage firms say on loss?

Brokerage firms believe that the actual loss will not be so large, as GST improvement can increase demand. According to Jafaries estimates, in FY 2026, this deficit can be reduced between 22,000 and 24,000 crore rupees. The firm argues that tax cuts may reduce inflation and in such a situation, the Reserve Bank can cut interest rates from 25 to 50 basis points.

Experts of Bransstein say that if the government does not cut capital expenditure, then this deficit can increase to about 20 basis points of the Union Budget. But if capital expenses are cut by 5 percent, then this effect will be reduced to only 5 basis points.

Impact on market

According to UTI AMC, the impact of this change on the bond market and stock market will be limited. At the same time, the ICRA welcomed the government’s move and said that this improvement will prove to be positive for industries struggling with the pressure of American high tariffs and will strengthen the market notion.

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RBI Rate Cut: The Reserve Bank of India (RBI) can once again cut the interest rate. The bank’s Monetary Policy Committee (MPC) is scheduled to be held in April next month. Its results will be announced on 9 April. There may have been a decrease in retail inflation in the country, but due to the sluggishness of growth, the central bank has no other option but to reduce the interest rate.

Recent data has revealed that unbridled inflation has now been controlled in the country. CPI Inflashp has now come to 3.6 percent, which is the lowest in the last 7 months. The prices of vegetables have also reduced significantly, due to which the decline in food inflation is also going on. The Target of the Reserve Bank’s Inflation 4 percent is no longer a dream, but is going to be a reality.

Repo rate may decrease up to 6 percent

In a survey of Reuters between March 18-27, 54 out of 60 economists estimated that RBI could reduce their benchmark repo rate by reduced by 25 basis points to 6 percent in their meeting of April 7-9. Earlier, in the meeting of the monitoring policy, the interest rate was reduced by 25 basis points to 6.25 percent. This was the first cut in the repo rate in five years.

According to India Ratings and Research (IN-R), the interest rate is estimated to be cut three times in FY 2026, which will be equal to the total 75 basis points. According to the report of The Economic Times, Ind-R Chief Economist and Public Finance Head DK Pant said, the decision of the monetary policy will depend on inflation, liquidity and the prices of things at the world level.

What is a repo rate?

Explain that the repo rate is the rate on which the Reserve Bank of India gives a loan to the commercial banks in exchange for government securities so that its needs of liquidity can be met. The repo rate is low, which becomes cheaper. This also reduces the pressure of EMI to a great extent.

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