Category: monetary policy

RBI should opt for 25bps repo rate cut, says SBI

**RBI Should Opt for 25bps Repo Rate Cut, Says SBI**

*By Dwaipayan Roy | Sep 28, 2025, 04:49 PM*

A recent report by the State Bank of India (SBI) has recommended a 25 basis points (bps) cut in the repo rate ahead of the upcoming Reserve Bank of India (RBI) monetary policy meeting. This suggestion comes amid expectations of benign inflation in the near term.

However, despite SBI’s recommendation, most economists anticipate that the Monetary Policy Committee (MPC) will maintain the status quo when it announces its decision on October 1.

### Rate Reduction: The ‘Best Possible Option’

The SBI report describes a 25bps rate cut as the “best possible option” for the RBI at this stage. Earlier this year, the central bank had already slashed the key short-term lending rate (repo) by 100bps in three installments since February, responding to a decline in consumer price index (CPI)-based inflation.

Nevertheless, some experts believe the MPC may opt to hold the current rates steady during the upcoming policy review, weighing various economic factors.

### Upcoming MPC Meeting

The MPC, headed by RBI Governor Sanjay Malhotra, will convene from October 1 to 3 to discuss the policy rate. This meeting takes place against a backdrop of ongoing geopolitical tensions and recent US-imposed 50% tariffs on Indian shipments.

In its August bi-monthly monetary policy review, the central bank chose to keep rates unchanged, carefully assessing how these external factors might impact India’s economy.

### Expectations and Economic Outlook

Aditi Nayar, Chief Economist at ICRA, noted that GST rationalization could reduce headline CPI inflation by 25-50 basis points during Q3 FY2026 and Q2 FY2027. She also expects that October-November 2025 could mark a new low for CPI inflation, although an upward trend may resume afterward.

Meanwhile, Dharmakirti Joshi of Crisil Limited expects a repo rate cut as early as October, citing lower-than-expected inflation numbers and sustained strong demand.

As the MPC meeting approaches, all eyes will be on the RBI’s decision and its implications for India’s monetary policy trajectory.
https://www.newsbytesapp.com/news/business/sbi-recommends-25bps-repo-rate-cut-for-upcoming-rbi-mpc/story

Federal Reserve’s Milan Advocates Rapid Interest Rate Cuts

Federal Reserve Governor Stephen Milan Advocates for Quicker Interest Rate Cuts, Impacting Financial and Crypto Markets

Federal Reserve Governor Stephen Milan, confirmed by the Senate on September 16, 2025, is pushing for faster interest rate reductions, suggesting cuts ranging from 50 to 150 basis points. His dovish stance marks a potential shift in monetary policy that could significantly influence financial markets, encouraging rallies in risk assets.

**Stephen Milan’s Policy Proposal and Economic Outlook**

Stephen Milan’s appointment to the Federal Reserve signals a change in direction compared to the current consensus among policymakers. He believes that the interest rate should be cut by at least 50 basis points, according to reports from CoinTech2U. His proposal for a 50 to 150 basis point reduction highlights a more accommodative outlook for the U.S. economy.

This approach could affect treasury yields and drive increased money flow into riskier assets, impacting both traditional financial markets and the rapidly evolving cryptocurrency sector. The anticipated increase in liquidity may serve as a catalyst for higher asset valuations.

**Implications for the Cryptocurrency Market**

Although official comments from cryptocurrency leaders remain limited, Milan’s stance has not gone unnoticed within the crypto community. Historically, Federal Reserve decisions on interest rates have triggered widespread discussions regarding economic conditions and monetary policy.

Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) often respond to such shifts, with previous rate cuts correlating with asset inflation and bullish trends. This connection suggests that Milan’s proposed policy could directly affect digital asset prices.

**Crypto Market Dynamics and Current BTC Performance**

Federal Reserve actions, including proposed rate cuts like those advocated by Milan, tend to create ripple effects across crypto markets. These moves can drive valuations higher amid broader economic adjustments and monetary shifts.

Currently, Bitcoin is exhibiting notable trading dynamics, priced at $115,701.26 with a market capitalization of $2.31 trillion. Over the past 90 days, BTC has increased by 12.89%, despite experiencing a minor 1.24% decline in the last 24 hours, according to data from CoinMarketCap.

**Conclusion**

Stephen Milan’s push for accelerated interest rate cuts underscores a more dovish Federal Reserve policy outlook. This shift could foster stronger liquidity inflows into risk assets, benefiting both traditional markets and digital assets like BTC and ETH. Investors and market watchers should closely monitor Federal Reserve meetings and statements for further insights into the evolving economic landscape and its effects on crypto valuations.
https://bitcoinethereumnews.com/tech/federal-reserves-milan-advocates-rapid-interest-rate-cuts/?utm_source=rss&utm_medium=rss&utm_campaign=federal-reserves-milan-advocates-rapid-interest-rate-cuts

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