RBI may cut rate by another 25 bps in December before hitting pause: Report

The Friday rate cut was the fifth consecutive rate reduction by the RBI this year

The RBI is likely to cap its record interest rate cutting sphere with another 0.25 percentage points reduction in December before hitting a pause button, according to brokerages.

The RBI Monetary Policy Committee (MPC) reduced repo rate by 25 basis points on Friday to 5.15 per cent and decided to maintain the accommodative stance "as long as it is necessary to revive growth, while ensuring that inflation remains within the target".

"We see a high probability for the RBI MPC to deliver a final 25 basis points cut to bring the repo rate to 4.9 per cent in December. It would be