RBI likely to cut Repo Rate by 25 bps in December policy meeting: Morgan Stanley

Mumbai (Maharashtra) [India], November 19 (ANI): The Reserve Bank of India (RBI) is expected to reduce the repo rate by 25 basis points in its upcoming December 2025 policy meeting, according to a recent report released by Morgan Stanley.The report highlighted that its expectation is driven mainly by continued downside surprises in headline Consumer Price Index (CPI) inflation. “On monetary policy, we expect the RBI to ease rates 25bp in the Dec-25 policy meeting, with a terminal policy rate of 5.25 per cent".If RBI eases rates in December, the repo rate will be reduced to 5.25 per cent.According to the report, the policy response is likely to remain prudent. After this move, the central bank is expected to turn data-dependent and adopt a ‘wait and watch’ approach.This will allow the RBI t