RBI Expected to Cut Repo Rate by 0.25% Next Week, Last Cut in Cycle: Report

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News18•27-01-2026, 20:15
RBI Expected to Cut Repo Rate by 0.25% Next Week, Last Cut in Cycle: Report
- •The Reserve Bank of India (RBI) is projected to decrease the key repo rate by 0.25% on February 6.
- •This rate cut is anticipated to be the final one in the current easing cycle, bringing the repo rate to 5.25%.
- •Economists at Bank of America suggest RBI will continue easing due to benign forward inflation and softening growth.
- •Significant liquidity injections and longer-term liquidity assurance are expected to accompany the rate cut.
- •The report indicates that rupee weakness is unlikely to significantly impact the rate cutting cycle.
Why It Matters: RBI is expected to make a final 0.25% repo rate cut next week, signaling the end of the current easing cycle.
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