Brief by Shorts91NewsDesk / 04:01am on 13 Mar 2025,Thursday Business
India's retail inflation declined to 3.61% in February 2025, marking a seven-month low and falling below the Reserve Bank of India's (RBI) medium-term target of 4%. This decrease is primarily attributed to a significant drop in vegetable prices, leading to a food inflation rate of 3.75%, the lowest since May 2023. The easing inflation provides the RBI with the opportunity to implement further rate cuts to stimulate economic growth. Economists anticipate a 25 basis points reduction in the repo rate during the April policy meeting, with potential for additional cuts in subsequent months. The RBI had previously reduced the key interest rate by 25 basis points to 6.25% in February, the first cut in nearly five years.
