RBI will lower rates again in this financial year, estimate the global broker

New -Delhi, April 9 (IANS). The Reserve Bank of India (RBI) decision to lower the repo rate by lowering 25 basis points to 6 percent and ‘akomodate’ from ‘neutral’ to ‘akomodate’ strengthened the expectations of more financial relaxation in the coming months between global brokers. In the midst of signs of global uncertainties, increasing tariff stress and slow economic growth, Morgan Stanley and Crisil analysts expected at least once or twice to lower rates in this financial year. Morgon Stanley is expected to deduct 25 to 25 basis points in the June policy meeting, as well as a decrease in growth, there is a possibility of more relaxation of 50 to 75 basis points. The RBI reduced the GDP forecast for FY 2026 from 6.7 percent to 6.5 percent, indicating the risks of global tariff growth and poor investor spirit. However, inflation remains under control. Food prices brought the head inflation under the Central Bank’s 4 percent target, which reduces RBI CPI inflation to 4 percent for FY 2026. In addition, Morgan Stanley believes that RBI will be active in the management of liquidity. Crisil also repeated the similar approach to the speed cuts due to poor inflationary pressure and rising risks for development, called the ‘predetermined conclusions’. “The change in the RBI policy indicates a more durable rate deduction cycle,” said Crisil chief economist Dharamkirti Joshi. He said that at least two more rate deductions of 25 basis points could be expected during the financial year. Joshi also said that although the prediction of normal monsoon is good for food inflation, there is a need to carefully monitor the growing climate disruption such as rising heat. -Ians SKT/ABM shares this story -tags