RBI Expected to Cut Repo Rate by 0.25% Next Week, Last Cut in Cycle: Report

• The Reserve Bank of India (RBI) is projected to decrease the key repo rate by 0.25% on February 6.
• This rate cut is anticipated to be the final one in the current easing cycle, bringing the repo rate to 5.25%.
• Economists at Bank of America suggest RBI will continue easing due to benign forward inflation and softening growth.
• Significant liquidity injections and longer-term liquidity assurance are expected to accompany the rate cut.
• The report indicates that rupee weakness is unlikely to significantly impact the rate cutting cycle.

Why It Matters: RBI is expected to make a final 0.25% repo rate cut next week, signaling the end of the current easing cycle.