RBI Signals Room For Further Rate Cuts
The Reserve Bank of India has indicated there is space for further policy rate cuts after retail inflation dropped to a record low of 0.25 percent in October. RBI Governor Sanjay Malhotra said the sharp fall in inflation strengthens the case for easing, though any move will depend on the Monetary Policy Committee’s assessment.
Growth Momentum Remains Strong
The central bank noted that India’s economic activity continues to show resilience. High-frequency data points to strong manufacturing output, steady services growth and healthy festive-season demand. The RBI added that credit flows have improved and financial conditions remain supportive, helping sustain the growth outlook.
Policy Path Ahead
The repo rate has remained unchanged since August, following cumulative reductions of 100 basis points earlier in 2025. While the environment appears favourable for more cuts, the RBI said it will act cautiously, keeping an eye on future inflation trends and global uncertainties before adjusting policy.
