Mumbai, February 8, 2025: Bank of Baroda has projected a cumulative 75 basis points (bps) reduction in the repo rate by the Reserve Bank of India (RBI) in 2025. The bank’s economic research team attributes the expected rate cuts to easing inflationary pressures, stable crude oil prices, and favorable global economic conditions. This anticipated policy shift aims to support growth and boost investment as India continues to strengthen its post-pandemic recovery.
Bank of Baroda officials highlighted that the RBI is likely to adopt an accommodative stance to encourage credit growth and stimulate domestic demand. With inflation expected to remain well within the central bank’s target range, the repo rate cuts are expected to provide much-needed momentum to sectors such as real estate, manufacturing, and small and medium enterprises (SMEs). The forecast underscores optimism about India’s economic outlook for the coming year.
