Why the RBI may cut interest rates by 25 basis points on Friday

The slowest growth rate since the pandemic reflects moderation across key sectors, driven by high interest rates, persistent inflation—especially in food commodities—weak urban consumption, and sluggish capital expenditure. This marks a sharp drop from 8.2% growth in FY24. Notably, the RBI cut its FY25 growth forecast to 6.6% from 7.2% in its December 2024 policy.