The common man’s big advantage, RBI can announce in October, what will be less the burden of your loan?

The Reserve Bank of India (RBI) will declare its next bi -monthly monetary policy on 1 October. Meanwhile, a research report by State Bank of India (SBI) estimates that the Reserve Bank may cut interest rates by 25 basis points (0.25%). The report states that retail inflation will be under future control, making this step beneficial for the economy.

The Monetary Policy Committee (MPC) headed by RBI Governor Sanjay Malhotra will hold a meeting for three days from Monday. This meeting is taking place at a time when international geopolitical tension is increasing and the US is imposing 50% tariff on Indian exports. The final decision will be declared on 1 October.

Significantly, since February, the RBI has cut the rates of 100 basis points in three phases in three phases, but instead of making any changes, the view of “Wait and Watch” was adopted at the August meeting.

Madan Sabnavis, the chief economist of Bank of Baroda, says inflation is already below the target of 4% and the country’s economic growth rate is expected to be above 6.5%. Therefore, there is no need to cut interest rates at the moment, although further steps can be taken to keep investors’ notion positive and keep bond yields stable.

ICRA chief economist Aditi Nair says that the recent rational enhancement may reduce inflation in October-November, but after that the trend will go upwards again. Therefore, the October policy is likely to remain unchanged (without any changes).

Crisil’s chief economist Dharamkirti Joshi says inflation is less than expected and the main inflation is historically low. Changes in GST rates will also reduce inflation. In addition, the possibility of cutting and further cut by the US Federal Reserve gives policy flexibility to the RBI. SBM Bank India’s Mandar Petal said that at present, the RBI may maintain “status quo” and take further steps based on the situation in the December meeting.

The structure of GST has become two-tier from 22 September. Now only 5% and 18% rates are applicable. This simplified structure has been implemented by combining back rates of 5%, 12%, 18% and 28%. This has made 99% everyday things cheaper and expect further control over inflation.