RBI Repo Rate Cut Expected in February: Foreign Brokerage Report
Economy
C
CNBC Awaaz•27-01-2026, 20:56
RBI Repo Rate Cut Expected in February: Foreign Brokerage Report
- •A foreign brokerage report suggests RBI may cut the repo rate by 0.25% in its February 6 Monetary Policy Review.
- •Economists at Bank of America predict the cut due to subdued inflation and potential weakening economic growth.
- •The report anticipates the repo rate could drop to 5.25% and a significant liquidity infusion into the system.
- •RBI recently announced a liquidity infusion of over 2 trillion rupees, indicating strong support.
- •The central bank might also raise its GDP growth projections, with inflation expected to remain low.
Why It Matters: RBI is likely to cut repo rates by 0.25% in February, coupled with significant liquidity infusion.
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