RBI May Cut Rates Three More Times by 2025 Amid Weak Growth – ANZ

RBI May Cut Rates Three More Times by 2025 Amid Weak Growth – ANZ

India's central bank is expected to cut interest rates three more times by 2025, according to a note from ANZ Research. Analysts argue that while inflation is currently not a concern, weak economic growth is emerging as a key issue, potentially requiring additional monetary easing from the Reserve Bank of India (RBI).

ANZ notes that if India’s GDP print for the January–March quarter falls below expectations, the RBI may be forced to revise down its current 6.5% growth projection for the 2024–2025 fiscal year.

While there are positive signs from ongoing trade discussions between the United States and China, the broader impact of global tariffs on foreign demand remains uncertain. ANZ concludes that more data will be needed before making any adjustments to its current outlook for India’s economic growth.