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Saturday, November 29, 2025 | 07:37 AM ISTहिंदी में पढें
The case for RBI rate cuts: Space, need, and timing considerations
The inflation backdrop provides ample room. Core inflation has edged up, but mainly driven by gold prices
 "Reserve Bank of India, RBI")
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The government has announced personal income tax cuts, GST cuts and frontloaded capex, but it also intends to maintain the fiscal deficit at 4.4 per cent of GDP, which means that the net fiscal impulse is not as large.
As the Monetary Policy Committee of the Reserve Bank of India (RBI) meets, we believe there is a case for resuming rate cuts, based on space, need, and timing considerations.
Space for easing
The inflation backdrop provides ample room. Core inflation has edged up, but mainly driven by gold prices. Underlying inflation measures such as the trimmed mean and super core are closer to 3 per cent. Even the year-ahead inflation projections showing an uptick above 4 per cent, largely reflect an unfavourable base rather than emerging price pressures. The upcoming GST rationalisation should
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
Topics : Reserve Bank of India BS Opinion RBI rate cut
