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RBI Policy: Ground well set for a rate cut

ICICIdirect Research 03 Oct 2025 DISCLAIMER

RBI in its policy rate kept Repo rate unchanged at 5.5%, although the tone of the policy was dovish.
For FY26, CPI is now estimated at 2.6% (vs. 3.1% in Aug’25).
The Reserve Bank has revised FY26 GDP growth estimate to 6.8% (6.5% in Aug’25). With current growth trajectory below 6.5% in H2 due to external headwinds.
As per RBI, the current macroeconomic conditions and the outlook have opened up policy space for further supporting growth. However, the MPC noted that the impact of the front-loaded monetary policy actions and the recent fiscal measures is still playing out.

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