New Delhi, Aug. 13 -- The Reserve Bank of India (RBI) is unlikely to cut interest rates in its October policy meeting, as inflation in August 2025 is expected to rise above 2 per cent, according to a report by the State Bank of India (SBI).

The report said with the August inflation print likely to top 2 per cent and be closer to 2.3 per cent. Even a rate cut in December could be challenging if growth numbers for the first and second quarters are taken into account.

It stated "a rate cut in October looks difficult. Even a rate cut in December looks a tad difficult".

India's retail inflation (CPI) eased to a 98-month low of 1.55 per cent in July 2025, compared to 2.10 per cent in June 2025 and 3.60 per cent in July 2024.

This marked the...