A research report by State Bank of India (SBI) has pitched for a 25-basis-point (bps) rate cut, calling it the “best possible option" for the Reserve Bank of India (RBI). However, several experts believe that the central bank’s rate-setting panel may once again opt for a status quo when it announces its bi-monthly monetary policy on October 1.

The Monetary Policy Committee (MPC), chaired by RBI Governor Sanjay Malhotra, will begin its three-day deliberations on Monday against the backdrop of ongoing geopolitical tensions and the US imposing a 50% tariff on Indian shipments. The policy decision will be announced on Wednesday.

The RBI had earlier reduced the repo rate by 100 bps in three tranches starting February 2025, as consumer price index (CPI)-based inflation declined. However, in it

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