RBI Might Lower Repo Rate in December Policy Meeting
Attention all borrowers and investors out there! The Reserve Bank of India (RBI) possibly will lighten up the heaviness of your wallet a bit. A report from CareEdge says that the central bank is likely to cut repo rates by 25 basis points in the December monetary policy revision.
The reason behind it is that inflation has dropped to a ten-year low of 0.3%, thus giving the RBI a chance to relax the monetary policy a bit, and at the same time, India’s economic growth is quite strong. If you are thinking of taking a loan or buying an expensive item, this might be the right time. Are you all set to take advantage of the rate cut?
Inflation Decline To A Decadal Low – A Blessing For The Borrowers!
Wonderful news for your pocket! The annual inflation rate has gone down to the lowest point in a decade of just 0.3% in October, which is much less than the RBI’s 4% target. Thus, the possibility of rate cuts has opened up. Can you imagine the situation of lending or investing when there is so much calm in the market? It feels like obtaining a financial windfall! CareEdge analysts point out that stable Brent crude oil prices, full reservoirs that are favorable to rabi sowing, and low price pressures from China’s excess capacity are the contributing factors to the control of inflation.
So, if you are planning a home loan, a car, or just want to know the economy’s pulse, it could not be a better time.
RBI December Policy Preview: Key Highlights
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GDP Growth Outlook: India’s GDP grew 8.2% in Q2 FY 2025-26, projected to moderate to ~7% in H2; full-year growth forecast at 7.5%.
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Real Policy Rate & Rate Cut Scope: CPI inflation expected to average 3.7% over 12 months; real policy rate at 1.8%, above neutral range (1–1.5%), indicating room for a rate cut.
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External Sector Resilience: Despite US trade negotiations and geopolitical tensions, India’s forex reserves rose by USD 27 billion to USD 693 billion as of mid-November.
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CareEdge Forecasts: RBI likely to revise FY’26 inflation projection to 2.1% and maintain growth forecast at 7.5% in December policy meeting.
(With inputs From ANI)
Also Read: Rupee Plunges Near Record Low At 89.75! Is India’s Currency On The Edge?