India, Sept. 28 -- A quarter-point repo rate cut is the "best possible option" for Reserve Bank of India in its upcoming monetary policy, SBI Research has said, even as other policy watchers saw another status quo.

There is "merit and rationale" for a 25 basis-point RBI rate cut as India's retail inflation rate is expected to remain benign even in the next financial year, SBI Research said, as GST rationalisation is likely to keep the prices suppressed. Additionally, the impact of 50% US tariffs on India has already started showing in economic activity.

One basis point is one-hundredth of a percentage point.

Bank of Baroda seemed to echo SBI Research's view.

"While we do believe there is limited scope for any change in the repo rate i...