The Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC) started its bi-monthly meeting on Monday, which will last two days, with the rate decision to be announced on Wednesday, October 1.

A recent research report by the State Bank of India (SBI) said the MPC should go for a 25 basis points (bps) cut in the key policy rate, calling it the “best possible option”.

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In the last MPC meeting held between August 4 and 6, the RBI MPC announced that the repo rate was kept unchanged at 5.5 per cent, after three consecutive cuts since February.

Since August, multiple changes have taken effect as the US tariffs continue to remain in place; the GDP surpassed expectations in the June quarter at 7.8 per cent. Also, the new GST reforms came into effect from September 22.

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