New Delhi, November 13, 2025: India’s retail inflation dropped to a record low of 0.25% in October, sparking widespread speculation that the Reserve Bank of India (RBI) may opt for a repo rate cut in its upcoming December policy meeting. The fall, largely driven by easing food prices and stable fuel costs, has placed inflation well below the central bank’s tolerance band of 2–6%, prompting analysts to predict a 25 basis point reduction to boost economic momentum.
However, experts caution that the RBI may still adopt a wait-and-watch approach before easing policy. Despite the headline drop, core inflation remains above 4%, suggesting underlying demand pressures. Additionally, with global economic uncertainties and potential volatility in crude oil prices, the central bank may prefer to assess the sustainability of this disinflation trend before making any monetary policy shifts.
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