New Delhi, Aug. 1 -- The likelihood of a 25 basis points rate cut by the US Federal Reserve in September has increased, but the final decision will depend on upcoming economic data, according to a recent report by ICICI Bank.

The report stated that there is now a 65 per cent probability of a rate cut in September and a 35 per cent chance that the Fed will maintain the current rates.

However, it emphasised that the final decision will remain contingent on the flow of economic data. This is because two inflation reports and two labour market reports are scheduled for release before the next policy meeting.

"If inflation uptick remains modest and labour market starts to deteriorate, the FOMC will likely cut rates by 25 bps in September an...