CPI is now well within RBIs main inflation target of 4%, warranting a possibility of yet another 25 bps rate cut from the central bank in the upcoming April 2025 policy. If that were the case, a repo rate cut would lead to further revision in home loan EMIs and fixed deposit rates by banks.

India’s Consumer Price Index (CPI) inflation fell to a seven-month low of 3.61 per cent in February 2025, surpassing expectations and creating room for a potential second consecutive interest rate cut by the Reserve Bank of India (RBI) next month, reported The Hindu.

Indias inflation outlook showed a significant improvement in February 2025, as the year-on-year Consumer Price Index (CPI) inflation rate stood at 3.61 per cent, marking a decline of 65 basis points from the previous month.