The figures of retail inflation of February 2025 can make the path of loans to become cheap in the coming times. Retail inflation in February has come to a seven -month low of 3. 61 percent. The Reserve Bank of India (RBI), or the central bank, is going to announce the next set of bilateral monetary policy on April 9. It is expected that the central bank can cut its policy rate by 0.25 percent further. The RBI, which has been ordered to retain retail inflation at 4 percent (+/- 2 percent), has reduced the last month short-term lending rate (0.25%) in the short-term lending rate (repo) to reduce concerns on the inflation front.
What do you say expert
According to PTI news, ICRA Chief Economist Aditi Nair said that CPI inflation has declined much more than expected and it has reached a seven -month low, which is far below the middle point of the RBI Monetary Policy Committee’s Monetary Policy Committee’s medium -term target limit, due to the welcome fall in food inflation. He said that however, we believe that gradual increase in inflation of vegetables in March 2025 may prevent further softening of food and beverages in the month after sufficient decline in the last four months.
Expectation of rate cut strengthened
Aditi Nair further said that the inflation figures fell below 4 percent in February, the April 2025 MPC meeting has strengthened the expectation of the rate of 25 inserts points. He said that after this, the meetings of June 2025 or August 2025 may have another repo rate of 25 basis points. The NSO collects price data from selected 1,114 urban markets and 1,181 villages, covering all states/union territories on weekly rosters.
The ICRA chief economist stated that retail inflation has declined much more than expected and it has reached a seven -month low, which is significantly below the middle point of the RBI’s Mandatory Policy Committee’s medium -term target limit, causing a welcome fall in food inflation.
The lowest inflation after July 2024
Releasing retail inflation issued by the National Statistics Office (NSO) on Wednesday, stating that the headline inflation of February 2025 has fallen by 65 basis points as compared to January 2025. After July 2024, it is the lowest inflation from year to year.
Latest business news