Citigroup: The Reserve Bank of India may choose to cut interest rates by 25 basis points next week.

Citibank stated that the Reserve Bank of India may choose to cut interest rates by 25 basis points next week to provide a "buffer" to address the risk of slowing economic growth. Citibank has joined a number of major banks including the State Bank of India, Barclays Bank, Capital Economics, Nomura Securities, and Mitsubishi UFJ Financial Group in calling for a rate cut on October 1st. Citibank has lowered its "terminal" repurchase rate forecast to 5.25%, down from the previous forecast of 5.50%; the current repurchase rate is 5.50%. Citibank stated that if there is no rate cut in October, the window for rate cuts in December will remain open. Citibank has revised its inflation forecast for the 2026 fiscal year from 3.2% to 2.9%, and suggests that the Reserve Bank of India may raise its economic growth forecast for the 2026 fiscal year from 6.5% to around 7%.