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Interest rates may decrease in the coming time on all types of debt, including home loan, personal loan, car loan and education loan. This will also lighten the burden of EMI of your existing loan. Indeed, the expectations of RBI cutting the major interest rate repo rate are increasing. According to SBI Research Ecowrap, RBI may cut the repo rate by 0.75% in 2025. Further April, June and October policy meetings are expected to reduce 0.25 per cent each time. Experts believe that retail inflation is expected to be 3.9 per cent in the fourth quarter of the current financial year. At the same time, the average inflation rate of the entire year is estimated to be 4.7 percent. This decline in inflation will provide support for RBI to cut the repo rate.
Interest rate may be reduced in April and June
However, in the financial year 2026, 4 per cent of inflation is expected to be between 4.2 per cent, with the core inflation between 4.2 per cent to 4.4 per cent. In view of controlled inflation, SBI Research Analysts believe that the RBI repo rate may decrease by 0.75 per cent in this bicycle. The RBI may cut the repo rate continuously in April and June 2025. After this, the new round of rate cut can begin in October 2025. SBI Research Ecowrap said, “With a slow inflation rate in this month and ahead, we hope that the repo rate in this cycle can be reduced by 0.75 per cent. The next April and June policy meeting is expected to be constantly cut in the policy meeting. The new cycle of the rate cut may start again from October 2025.”
Inflation rate on 7 months low
In February 2025, India’s retail inflation rate came to a seven -month low to 3.6 per cent. Inflation came down mainly due to a sharp fall in the prices of food items. Food and beverages inflation decreased by 3.84 per cent, as vegetable prices declined significantly. The first for the first time in 20 months due to a major fall in garlic, potato and tomato prices, the vegetable inflation became negative. Experts believe that Mahakumbh reduced the consumption of garlic, while the increased demand during the fasting period led to a jump in fruits.
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