According to Mars Finance, Barclays economists in a report stated that the Reserve Bank of India may cut interest rates in June, earlier than the previously anticipated August. The average inflation rate for April-June is expected to be around 3.0%-3.1%, significantly lower than the central bank's 3.6% forecast, which could prompt a third consecutive rate cut at the June meeting. Although the continuous slowdown in food prices may be coming to an end, overall price pressures remain under control, and May's inflation data may benefit from the base effect. Barclays predicts the inflation rate for the 2025-2026 fiscal year will be 4.0%, with downside risks.
Barclays: RBI may cut rates in June
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