New Delhi, Feb. 7 -- The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is set to announce its first monetary policy under new Governor Sanjay Malhotra on Friday.

Experts anticipate that the central bank may cut the repo rate by 25 basis points (bps) to support economic growth while keeping inflation under control.

According to a Bank of Baroda report, inflationary pressures have eased, primarily due to a decline in the prices of essential vegetables such as tomatoes, onions, and potatoes. This improved supply scenario has contributed to lower volatility in the Consumer Price Index (CPI), providing the RBI with some room for a measured rate cut.

The report states, "Balancing and counterbalancing all macro and geopol...