March 18, 2025 11:20 AM
India’s CPI Inflation to Average 4% in FY26, 75 bps Rate Easing Likely: Morgan Stanley
A report by Morgan Stanley on Tuesday projected that India’s consumer price index (CPI) inflation is expected to average 4% in FY26, paving the way for a cumulative 75 basis points (bps) rate cut by the Reserve Bank of India (RBI)—an upward revision from the previously estimated 50 bps easing cycle. The report noted that lower trailing inflation, primarily due to easing food prices, has created space for additional rate cuts. "We have updated our monetary policy outlook to incorporate one ...