Impact of a low inflation rate! RBI can lower the repo rate in the coming months: Report

New -delhi, October 7 (IANS). The Reserve Bank of India (RBI) could reduce interest rates once more in the coming months because inflation is at low levels. This information was given in a report released on Tuesday. Statistics compiled by Bank of Baroda said that although the RBI has so far kept the Repo rate unchanged at 5.5 percent on the MPC in October, there is still a space for further recreation to support the development. The report said that the reduction in GST tariffs and the festive season will play a major role in speeding up India’s economic growth in the current quarter. These factors will strengthen consumption and assist in dealing with global unfavorable conditions. According to the report, the RBI MPC kept the repo rate unchanged in October, which kept the trend of the policy neutral to see the economic impact of GST and the impact of rates. RBI increased the growth rate estimate for FY 26 to 6.8 percent, which was 6.5 percent earlier. This reduces the estimate of inflation from 3.1 percent to 2.6 percent. The report says that there are signs of mitigation in high frequency indicators such as air passenger traffic, port freight and rail freight, indicating a slight recession in speed. However, an improvement in diesel consumption, government spending and bank loan growth has been recorded. Recently, GST rate cuts and claims are expected to get the boost in the coming months from the festive season. Bank of Baroda said India remains the fastest growing major economy in the world, mainly due to strong domestic consumption. -Ians ABS/ Share This Story Tags