'Best possible option': RBI may cut rates by 25 bps in Sept-Oct policy, says SBI report; flags 'Type 2 error' risk

Sep 22, 2025 - 17:00
'Best possible option': RBI may cut rates by 25 bps in Sept-Oct policy, says SBI report; flags 'Type 2 error' risk

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State Bank of India anticipates the Reserve Bank of India's Monetary Policy Committee to potentially lower rates by 25 basis points in September. Citing controlled inflation, expected to ease further through FY27, SBI suggests a rate cut is optimal. They caution against inaction, which they believe risks hindering economic progress.

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