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Bloomberg Quint

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Image Credit: Bloomberg Quint

Sharp Inflation Drop Prompts Economists To See RBI Terminal Rate At 5.25%

  • Economists expect the Reserve Bank of India to lower its terminal repo rate to 5.25% in 2025, due to falling inflation and stable global risks.
  • Retail inflation in March eased to a six-year low at 3.3%, driven by a sharp drop in vegetable prices.
  • Analysts forecast further rate cuts in the upcoming months, with a consensus for a more dovish stance.
  • Nirmal Bang projects cumulative rate cuts of 100 basis points in 2025, with cuts likely in June and August.

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