RBI Rate Cut Expected in Feb as Inflation Projections Fall: Economists

• Economists expect further RBI rate cuts in February, following a 25 bps reduction last week.
• Optimism for more easing stems from the RBI's lower inflation projections and a slowing economy.
• The RBI revised its CPI inflation forecast for FY26 downwards to 2% from 2.6%.
• Real interest rates remain restrictive, suggesting the rate-easing cycle may continue.
• The central bank cut the repo rate by 25 bps to 5.25% on December 5.

Why It Matters: Expected RBI rate cuts signal cheaper loans and economic shifts.