Piyush Goyal Signals Room For RBI Rate Cut
India’s retail inflation fell sharply to 0.25 percent in October 2025, marking the lowest level recorded in the current data series. The decline was driven mainly by easing food prices and recent tax reductions. Economists say favourable base effects also contributed to the unusually low reading.
Government Suggests Scope For Rate Reduction
Union Commerce Minister Piyush Goyal said the steep fall in inflation gives the Reserve Bank of India enough space to consider reducing policy rates. He added that lower interest costs could help revive demand and support economic growth at a time when global uncertainties continue to weigh on markets.
Impact On Borrowers And Economy
If the RBI decides to cut rates, borrowers may see reduced loan EMIs, while businesses could benefit from cheaper credit. Analysts believe a rate cut could boost household spending and encourage fresh investments, strengthening overall economic activity.
All Eyes On RBI’s December Policy
The RBI has kept the repo rate unchanged at 5.5 percent since August. With inflation below the target band and market expectations leaning toward a 25 basis-point cut, attention now shifts to the central bank’s December policy meeting.
