Tag: inflation

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

Tokyo Consumer Prices Rise 2.5% In September, Rice Surges Nearly 47%

While corporate profits in Japan continue to reach record highs, employee wages remain stagnant, leaving a growing segment of the workforce struggling. Since the collapse of the bubble economy, non-regular employment has steadily increased, creating a widening gap between regular and non-regular workers.

Today, 15.4% of the population earns less than half the median standard of living, marking the second-highest proportion among G7 countries after the United States. Meanwhile, Tokyo consumer prices rose 2.5% in September compared with a year earlier. The index excluding fresh food—often subject to sharp fluctuations—reached 110.0 across the capital’s wards, with the pace of growth remaining unchanged from the previous month.

In the corporate sector, Panasonic Holdings will begin soliciting early retirement applications next month at one of its core operating companies as part of broader restructuring efforts. Meanwhile, Toyota has started demonstration trials at its experimental city project known as Woven City. As of September 25th, several employee households have moved in to test how AI and autonomous driving technologies can be integrated into everyday life.

Japan currently counts only eight unicorns—unlisted startups valued at over 150 billion yen—compared with 690 in the United States. It has yet to produce a single “hectocorn,” a term used for companies worth more than 100 billion dollars, such as ByteDance’s TikTok, OpenAI, or SpaceX.

On the international front, Japan and Saudi Arabia announced a new memorandum of understanding for economic cooperation on September 24th at the Osaka-Kansai Expo. The agreement places strong emphasis on expanding the entertainment and content industries.

In local news, residents of Settsu City, Osaka Prefecture, have decided to file for pollution mediation against chemical manufacturer Daikin Industries. This action follows the discovery of per- and polyfluoroalkyl substances (PFAS) in the groundwater near the plant, some of which are suspected to be carcinogenic.
https://newsonjapan.com/article/147032.php

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