Repo Rate Cut Expectation: The Reserve Bank of India (RBI) is likely to cut the repo rate in the Monetary Policy Committee meeting to be held in the month of December. On Thursday, economists informed that the inflation rate has decreased in the month of October. Retail inflation has reached a record low of 0.25 percent in October, which was 1.44 percent in the month of September.
According to experts, this is the lowest inflation rate recorded in the Consumer Price Index (CPI) series. Overall, inflation has come down because, on one hand, the prices of food items have come down and on the other hand, the prices of other essential goods are also increasing at a slow pace.
What information did CRISIL give?
According to the information given by CRISIL, due to lower than expected food inflation rate, low global crude oil prices and GST reform, retail inflation rate may average 2.5 percent in this financial year. Which is much less than last year’s figure of 4.6 percent. Also, the benefits of GST reform are reaching the common people. However, the effect of GST was not completely transferred in the month of October. The effect of which will be seen in the month of November.
Also giving further information, Crisil said that the retail inflation rate in the month of November is 0.9 percent, it is likely to decline further due to GST changes. Also, the core inflation rate may remain less than 2 percent in the financial year 2026.
There was no change in repo rate in October
The Monetary Policy Committee (MPC) headed by RBI Governor Sanjay Malhotra had decided in October not to make any change in the repo rate. It was decided to keep the repo rate at 5.5 percent. Earlier, even in the month of August, there was no change in the repo rate. The impact of the heavy tariffs imposed by America was visible in the committee’s decision.
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