BNP Paribas Forecasts Another RBI Repo Rate Cut by Feb 2026

• BNP Paribas Research expects RBI to cut the repo rate by 25 bps in February 2026, bringing cumulative easing to 150 bps.
• The report highlights that India's internal inflation-growth dynamic is the key driver for RBI's monetary policy decisions.
• Monetary easing is expected to continue, with benefits like lower funding costs accruing gradually to the banking system.
• Improved liquidity and policy easing will support growth and lead to a more durable transmission of rate cuts.
• Banks are projected to see a "benign margin tailwind" through FY27, with private banks' EPS growth turning to teens by 2QFY27.

Why It Matters: BNP Paribas anticipates RBI's final 25 bps repo cut by Feb 2026, boosting bank profitability.