Inflation in the country is decreasing on a slow basis, and also in America, there have been signs of reducing the policy rate by the Fed Reserve as the economic situation is slowing down. In such a scenario, RBI may also cut interest rates in the next MPC meeting, giving a big gift especially to borrowers. Economists of State Bank of India (SBI) have expressed their expectation in this regard. The SBI Ecorap report has expressed an estimate that the relief in inflation indicates that the repo rate will be reduced in the next monetary policy meeting. At present, universal good rain has been recorded across the country. Which is positive for the economy. Retail inflation recorded a decline of 3.54 percent in July. which is at a 59-month low. Retail inflation was 5.08 percent in June.

Repo rate unchanged for ninth consecutive time :
RBI has kept the repo rate unchanged for nine consecutive times, taking into account inflation and global factors. Which is currently 6.5 percent. Earlier, inflation in the country had increased by 7 percent. To control this, RBI has continuously increased the repo rate. It increased by 2.5 percent from May-22 to February-23. In July, wholesale inflation recorded a 3-month low of 2.04 percent. Which is below the RBI’s target rate of 2-4 percent. Considering these positive signs, the RBI will cut interest rates in the MPC meeting in October. According to SBI’s Ecorap report, the pace of GDP growth has also slowed along with the decline in inflation. The pace of GDP growth in the first quarter of FY 2024-25 has been dry. The country’s real GDP growth may be 7.0-7.1 percent in the June quarter. While gross value added growth will decrease from 7 percent to an average of 6.7-6.8 percent. The reason behind the decline in growth is the decline in manufacturing activities.