SBI Research predicts that the Reserve Bank of India (RBI) will cut repo rates in February 2025, a decision that is unlikely to be influenced by the rupee’s weakness against the dollar. The report, released on the day RBI announced its monetary policy, predicts a cumulative 75 basis points cut in February 2025. The decision is unlikely to be influenced by the US Dollar’s situation, as was the case in 2018 when the RBI did not hike rates despite the rupee’s immense pressure.
