New Delhi, Nov. 19 -- In its upcoming December 2025 monetary policy committee (MPC) meeting, the Reserve Bank of India (RBI) is likely to lower the repo rate by 25 basis points attributed to persistent downside surprises in headline Consumer Price Index (CPI) inflation, said Morgan Stanley in its latest report.
A 25 bps reduction would bring the repo rate down to 5.25 percent, which the report identifies as the terminal policy rate for the current easing cycle. Morgan Stanley noted that the RBI is expected to proceed cautiously. Following the December move, the central bank is projected to take a data-dependent, 'wait and watch' approach, evaluating the combined effects of its policy easing across interest rates, liquidity management, and ...