50 bps rate cut likely in 3QFY25: Report

New Delhi: Rising global risks, including the rise in crude oil prices, may delay RBI’s rate cuts, analysts said. “While we maintain our call for a 50 bps rate cut starting in 3QFY25, we note increasing risks of further delays to the RBI’s rate cuts from rising crude oil prices, a further push-back to the timing of the US Fed’s rate easing cycle and volatile food inflation,” Kotak Institutional Equities said.

“In the near term, we see upside risks to our 1QFY25 average inflation of 5 per cent from the high temperatures causing volatile food inflation, geopolitical risks and ongoing OPEC plus supply cuts pushing up crude oil prices and higher non-energy commodity prices. These risks pose a challenge,” the brokerage said.