SBI cuts RBI rate-hike forecast to 25 bps in December
In short
State Bank of India has lowered its forecast for the Reserve Bank of India’s next rate hike to 0.25% from 0.50%. The change comes after better external conditions and a return of foreign fund inflows. Analysts also expect inflation to stay above 6% in November before easing.
What the reporting says
State Bank of India has cut its estimate for the RBI's upcoming rate hike to 0.25%, down from 0.50%, according to an Economic Times economy summary. The revision follows improving external conditions and a revival in foreign fund inflows. Analysts also said inflation is projected to stay above 6% in November before easing, which adds to expectations around the central bank's next move.
Why it matters
State Bank of India economists have reduced their forecast for the Reserve Bank of India's next rate hike to 25 basis points from 50 basis points. The change is tied to improving external conditions and renewed foreign fund inflows. Analysts also expect inflation to remain above 6% in November before easing, which keeps the policy outlook in focus for borrowers, markets and rate-sensitive sectors.