RBI may cut rates by 25 bps each in October, December MPC: Morgan Stanley

Morgan Stanley anticipates the Reserve Bank of India (RBI) to reduce policy rates by 25 basis points in both October and December, potentially bringing the terminal policy rate down to 5%. This easing is expected due to inflation consistently falling below the RBI's 4% target, with projections indicating an average CPI of 2.4% in FY26.